The Florida Justice Reform Institute has announced that recent reforms aimed at curbing lawsuit abuse have contributed to a 6.5% decrease in auto insurance rates among the state's five largest insurers. The organization, however, cautions against proposals it claims would favor trial lawyers.
According to the Institute, this announcement aligns with a broader pro-reform message from the Consumer Protection Coalition and the Florida Chamber of Commerce. They argue that measures such as HB 837, enacted in 2023, have begun to reverse years of steep premium hikes attributed to lawsuit abuse and aggressive legal tactics. These reforms addressed fee multipliers, tightened bad-faith rules, and limited litigation related to auto-glass and assignment-of-benefits, which have been longstanding priorities for the business community. Supporters warn that attempts to overhaul Florida's no-fault system could shift financial benefits from drivers back to trial lawyers.
Florida regulators report that for 2025, the top five auto insurance groups in the state are indicating an average rate reduction of 6.5%, following an increase of over 30% two years prior. Officials attribute this change to increased competition and legal reforms reducing questionable claims. Governor Ron DeSantis has highlighted more than $1 billion in refunds and credits returning to policyholders as loss ratios improve. Reform advocates assert these figures demonstrate that tightening lawsuit rules yields tangible savings for families.
The Institute's warning is set against national trends showing rising auto insurance costs as a significant factor in household inflation. Federal and industry data reveal increasing motor vehicle insurance costs nationwide, with many states experiencing double-digit premium hikes. Meanwhile, Florida's personal auto liability loss ratio has decreased from approximately 80.5% in 2022 to about 53.3%, now cited as the lowest in the country. Reform-minded groups argue this divergence highlights the value of Florida-style tort changes.
The Florida Justice Reform Institute is a Tallahassee-based civic-league organization advocating for civil-justice changes on behalf of the business community. Supported by the Florida Chamber of Commerce, it seeks to combat what it views as wasteful litigation while promoting fair legal practices and providing information on lawsuit trends and liability costs.