Florida Governor Ron DeSantis announced that the state has successfully reduced auto insurance rates, with insurers such as State Farm and Progressive lowering premiums following reforms aimed at curbing lawsuit abuse. This statement was made 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 bolstered the insurance market by reducing litigation abuse, lowering costs, and attracting new insurers. Since 2022, more than 477,000 policies have returned to the private market, a significant increase from just 16,408 that year. This development has boosted competition and expanded consumer options. Major providers like GEICO, Progressive, and State Farm have decreased their premiums by 10.5%, 8.1%, and 6% respectively. Additionally, auto glass repair lawsuits have dropped nearly 90% within one year.
In contrast, concerns over litigation abuse in Nevada have intensified in 2024. An American Tort Reform Association (ATRA) report indicates that since 2017, top plaintiffs' firms have contributed over $4.56 million to judicial campaigns and spent $137.2 million on legal ads in 2023. This financial influence has sparked debates about judicial impartiality and the state's plaintiff-friendly legal climate.
Insurance Newsnet reports that Nevada's auto insurance premiums saw significant increases in 2024, with six major insurers implementing rate hikes of at least 10% in October. This surge is partly attributed to the state's litigious environment where extensive legal advertising and large political contributions by plaintiffs' law firms create a climate conducive to frequent and costly lawsuits. These practices drive up operational costs for insurers, which are ultimately passed on to consumers as higher premiums.
DeSantis's website provides additional background information: he is a native of Dunedin, Florida; captained Yale’s baseball team; earned honors at Harvard Law; served as a Navy Judge Advocate General (JAG) officer in Iraq; and was elected governor in 2018. Under his leadership, Florida has experienced a strong economy, record-low crime rates, and expanded school choice.