Read the full piece in the Wall Street Journal
By the WSJ Editorial Board
Florida Gov. Ron DeSantis’s litigation reforms are starting to pay off for the state’s citizens in a big way. Auto and home insurers are announcing rate cuts—and get this—even issuing rebates.
State Farm said recently it will reduce auto rates in the Sunshine State by 10%. Combined with last year’s premium cut, its policyholders will save $400 a year on average. The Florida Office of Insurance Regulation says the state’s five largest auto insurers have reduced rates by 6.5% on average this year, saving policyholders hundreds of dollars.
Progressive Insurance also plans to send policyholders refunds averaging about $300. “Since Florida insurance reform was enacted in early 2023, we have seen lower loss costs on certain types of personal auto accident claims and favorable reserve development, and we have experienced strong profitability in our Florida personal auto business,” Progressive said. Its total auto refunds add up to nearly $1 billion, Mr. DeSantis said.
Republicans in 2023 passed a raft of tort reforms cracking down on lawsuit abuse. They were controversial at the time, and even some GOP lawmakers were skittish. But Mr. DeSantis persevered.
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As a result, home insurers are cutting rates and writing more policies in the Sunshine State. Since January 2024, 33 insurers have filed for rate decreases, and 17 new insurance companies have entered the market. Florida Peninsula Insurance Company, one of the state’s largest insurers, this summer filed for a 8.4% statewide rate cut on homeowners.
By contrast, tenant and household insurance costs have risen 7.5% on average nationwide over the past 12 months. Republicans searching for an affordability agenda might take note of Mr. DeSantis’s tort reforms. States are primarily responsible for regulating insurance and liability, and Florida shows that tackling thorny problems can pay dividends with some political patience. There are better ways than government handouts for politicians to put more money back into people’s wallets.