Florida Governor Ron DeSantis announced that the state's insurance market has stabilized, with 11 new insurers entering Florida over the past two years. This development has reportedly resulted in lower premiums and increased competition. The statement was made in a press release on February 5.
"Pleased to announce significant reductions in auto insurance rates in Florida," said DeSantis, Governor of Florida. "Statewide decreases averaging 5.6%."
According to the press release, Florida's tort reform has played a significant role in stabilizing the insurance market by curbing litigation abuse, reducing costs, and attracting new insurers. Consequently, more than 477,000 policies have returned to the private market since 2022, up from just 16,408 that year. This shift has led to greater competition and better options for consumers. Additionally, auto insurance rates are decreasing, with major providers like GEICO reducing premiums by 10.5%, Progressive by 8.1%, and State Farm by 6%. Auto glass repair lawsuits have also dropped by nearly 90% over the past year.
In 2018, the American Tort Reform Association (ATRA) ranked Florida as the nation’s top "Judicial Hellhole," citing excessive litigation and rampant lawsuit abuse as factors driving up insurance premiums and deterring business investments. However, by 2023, after implementing sweeping tort reforms, Florida was removed from ATRA’s Judicial Hellhole list and recognized as a "Point of Light" for its improved legal climate.
In contrast, Louisiana's lack of comprehensive tort reform has resulted in a litigation rate more than twice the national average. This situation contributes to some of the highest auto insurance premiums in the United States. In 2024, Louisiana's litigation rate was second only to Florida's. According to WWNO, this excessive litigation environment is a primary factor driving up insurance costs for Louisiana drivers.
DeSantis's website provides additional background on his career: he is a Dunedin native who captained Yale’s baseball team, earned honors at Harvard Law School, and served as a Navy Judge Advocate General (JAG) officer in Iraq. Elected governor in 2018, he has led Florida towards economic growth, record-low crime rates, and expanded school choice.