Florida Governor Ron DeSantis announced that the state has achieved significant reductions in auto insurance rates, with companies such as State Farm and Progressive lowering premiums. This development follows reforms aimed at addressing lawsuit abuse. DeSantis made the statement in a press release on February 5.
"Homeowners' insurance premium decreases," said DeSantis, Governor of Florida. "Statewide decreases averaging 5.6%."
According to the press release, Florida's tort reform has strengthened the insurance market by reducing litigation abuse, lowering costs, and attracting new insurers. Since 2022, more than 477,000 policies have shifted back to the private market, a substantial increase from just 16,408 that year. This shift has fostered greater competition and improved choices for consumers. Additionally, auto insurance rates are declining, with major providers like GEICO (-10.5%), Progressive (-8.1%), and State Farm (-6%) reducing premiums. Auto glass repair lawsuits have also dropped nearly 90% within a year.
In 2018, the American Tort Reform Association (ATRA) named Florida the nation’s top "Judicial Hellhole," citing widespread lawsuit abuse, excessive litigation, and soaring legal costs. This environment fueled frivolous lawsuits, driving up insurance premiums and discouraging business growth. However, by 2023, after implementing major tort reforms, ATRA removed Florida from the "Judicial Hellhole" list and recognized the state as a "Point of Light" for its significantly improved legal landscape.
In Louisiana, according to WWNO, the lack of comprehensive tort reform has resulted in a litigation rate over twice the national average, making it one of the most expensive states for auto insurance. In 2024, Louisiana had the second-highest litigation rate in the country after Florida. This surge in lawsuits has been cited as a key driver of rising insurance costs for Louisiana drivers.
According to his website, DeSantis is a Dunedin native who captained Yale’s baseball team and earned honors at Harvard Law School before serving as a Navy Judge Advocate General (JAG) officer in Iraq. Elected in 2018, he has led Florida to a strong economy with record-low crime rates and expanded school choice.