Opponents of ending legal abuse often argue that insurance companies don’t pass on the savings to consumers. Florida proves that is not the case, especially when it comes to auto insurance. Indeed, reform can lead to lower premiums and more competition in the market. Yesterday, Florida Governor Ron DeSantis announced that auto insurance rates in his state are declining anywhere between 6% and 10.5%. Gov. DeSantis said, “Unchecked litigation in Florida made for an environment that caused turbulence in insurance markets and steep increases in premiums.”

In their announcement yesterday, the governor’s office also noted:

Reforms are also driving down auto insurance costs across Florida. Major companies such as GEICO, Progressive, and State Farm have filed for rate reductions of -10.5%, -8.1%, and -6%, respectively. Additionally, litigation related to auto glass repairs has seen a dramatic decline, dropping from 24,720 lawsuits in the second quarter of 2023 to just 2,613 in the same period of 2024. This significant reduction follows the repeal of assignment of benefits and one-way attorney fees, contributing to greater stability and cost savings for Florida drivers. …

In 2019, the legislature passed, and the Governor signed HB 7065, which addressed unrestrained litigation incentivized by out-of-control attorney fees and unrestricted use of Assignment of Benefits (AOBs) to allow third parties to collect insurance benefits during a claim period. In 2021, Governor DeSantis signed SB 76, which:

• Tightened citizens’ eligibility requirements and eased its statutory cap on rate increases;
• Required plaintiffs to notify an insurer before a lawsuit is filed, allowing insurers to offer mediation or other alternatives to dispute resolution; and,
• Tightened the deadline to file insurance claims from three to two years from the date of loss.

…

In 2023, Governor Ron DeSantis signed House Bill (HB) 837, legislation that enacted significant and wide-ranging changes to civil litigation practices, including revamping the bad faith framework for negligence suits, eliminating exorbitant attorney’s fees, and expanding immunity for property owners defending against criminals injured on their property. The bill also cracked down on frivolous lawsuits by strengthening negligence standards and providing stronger defense to those targeted by malicious lawsuits. 

While reform opponents in other states falsely claim lawsuit abuse reform will not lower insurance costs, Florida’s success story proves the urgency and need for reform.