Opponents of lawsuit abuse reform often argue that insurance companies would not pass on savings to consumers. But a new Wall Street Journal editorial highlights that is not the case in Florida, which has seen lower auto insurance rates following a series of reforms. 

Using Florida and California as examples, the WSJ editorial noted how California’s anti-business legal environment has led to a $1 billion surcharge to prop up its failing insurer of last resort, while its largest fire insurer, State Farm, warns of financial instability.

Meanwhile, Florida, under Gov. Ron DeSantis, has enacted litigation reforms that have stabilized its insurance market, attracting new insurers and leading to lower rates.

“Auto premiums are also falling with major companies, including GEICO (-10.5%), Progressive (-8.1%), and State Farm (-6%), filing for rate reductions. Litigation over glass repairs plunged by 90% between the second quarters of 2023 and 2024. Florida’s success  may have inspired Georgia Gov. Brian Kemp to introduce a package of tort reforms last month. 

States are laboratories for policy experimentation, and California’s insurance price regulations are blowing up in a big way. But Florida is showing that political leaders can head off a market disaster and lower costs if they have the courage to reform.”

The WSJ editorial board underscores how California’s regulatory approach is pushing insurers toward insolvency – driving up costs for its residents, while Florida’s market-friendly policies are lowering rates. As states experiment with different strategies to tackle skyrocketing insurance costs, Florida is showing that bold, growth-oriented, pro-consumer protection reforms like curbing lawsuit abuse can help lower costs.