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By: Jason Brodeur
Legal reforms are producing measurable benefits for Florida consumers.
When Florida lawmakers enacted legal reforms in 2023, supporters argued that reducing rampant lawsuit abuse would ultimately lower costs for consumers.
Critics were skeptical.
Today, one of the state’s largest insurers has provided compelling evidence.
USAA recently told CNBC it will return nearly $1 billion in savings and value to eligible Florida members, including a $500 million dividend that will return money directly to approximately 830,000 policyholders. The average payment is expected to be around $760, with many families receiving more than $1,000. According to the company, Florida’s legal reforms played a major role in making those savings possible.
For Florida families struggling with the rising cost of everything from housing to groceries, that is welcome news. It is also an important reminder that public policy decisions have real-world consequences.
For years, Florida’s legal climate had become an outlier. Although our state accounted for only a fraction of the nation’s homeowners, it generated a wildly disproportionate share of homeowners’ insurance lawsuits. Excessive litigation and abuse of the legal system created billions in costs that ultimately found their way into insurance premiums paid by homeowners, drivers and small businesses. Further, the toxic legal climate led to an exodus of providers from the state, decimating market competition and fueling the rampant growth of state-backed Citizens Property Insurance.
For many Floridians, this meant skyrocketing premiums, limited consumer choice and uncertainty.
That is why lawmakers acted.
The reforms adopted in 2023 addressed several legal incentives that had encouraged excessive litigation and driven up costs throughout the insurance system. The goal was not to limit legitimate claims or access to the courts. It was to restore balance, discourage abuse and create a more predictable legal environment to stabilize the market and actually bring down costs for Florida families.
The results are becoming increasingly difficult to ignore.
Insurance litigation filings have fallen significantly. Auto glass lawsuits, once a major source of abuse, have dropped dramatically. Legal defense costs paid by insurers have declined from record highs. At the same time, more insurance companies have entered or expanded in Florida, increasing competition and consumer choice.
Why does this matter to Florida families and small businesses?
USAA’s announcement provides one of the clearest examples yet of how lower litigation costs can translate into real financial relief. The company has already reduced auto insurance rates and is now returning hundreds of millions of dollars directly to policyholders. Instead of being consumed by unnecessary legal costs, that money is going toward groceries, school field trips and patronizing local businesses.
As a State Senator and a small business owner, I understand how important these changes are. Insurance is not a luxury; it is a necessity. Insurance premiums shouldn’t force families to forgo a night out or businesses to delay hiring.
Reducing lawsuit abuse will not solve every affordability challenge facing Florida. Inflation, severe weather and rising repair costs continue to put pressure on consumers and insurers alike. But legal costs are one factor policymakers can address, and Florida’s experience suggests that meaningful reform can make a difference.
No reform is perfect, and policymakers should always ensure that consumers retain access to the courts when they have legitimate claims. Accountability matters, and so does fairness. But fairness also means recognizing when a system is working against the people it is meant to serve.
The nearly $1 billion USAA is returning to Florida policyholders is more than a corporate announcement. It is tangible evidence that reducing lawsuit abuse can help lower costs, strengthen markets and deliver benefits to consumers. More importantly, it shows that we can improve people’s lives by listening to their concerns.
For Florida families, homeowners, veterans and small businesses, that is welcome news. And it is a reminder that when public policy gets the balance right, real people win.
Jason Brodeur is the President Pro Tempore of the Florida Senate.