Texans for Lawsuit Reform has announced that Florida’s auto insurance rates decreased by an average of 6.5% following reforms aimed at curbing lawsuit abuse. The organization suggests that similar changes could help reduce costs for families and small businesses in Texas and Alabama.
Florida has been historically ranked among the most expensive states for auto insurance, partly due to litigation and abusive legal practices. According to the Florida Office of Insurance Regulation (OIR), reforms passed in 2022 and 2023 eliminated one-way attorney fees and curtailed assignment of benefits (AOB) practices, which had previously enabled inflated claims and excessive lawsuits. Regulators argue these reforms were essential in stabilizing the market and providing a pathway to lower insurance costs for consumers.
According to the Insurance Information Institute, Florida’s top five auto insurance groups, representing nearly 80 percent of the state market, filed for an average 6.5 percent statewide rate decrease in 2025. This represents a reversal from 2023 when drivers experienced average increases exceeding 30 percent. The new rate decreases are directly linked to reduced litigation costs and fewer fraudulent claims after the reforms.
Legal reforms have already reshaped Florida’s litigation environment. Milliman, an actuarial firm, reported that auto glass lawsuits dropped from more than 24,000 cases in the second quarter of 2023 to just 2,613 cases in the second quarter of 2024. Analysts concluded that this decline demonstrates how tort reforms reduced frivolous suits, allowing insurers to pass savings back to consumers through rate cuts.
Texans for Lawsuit Reform is a nonprofit advocacy organization focused on reducing lawsuit abuse and promoting tort reform across Texas. The group argues that excessive litigation and “nuclear verdicts” increase costs for households, small businesses, and consumers by inflating insurance rates and product prices. According to its mission statement, Texans for Lawsuit Reform works to create a fairer legal system that encourages economic growth and reduces burdens caused by frivolous lawsuits.
