Florida’s Litigation Reform is Delivering Rate Relief to Insurance Consumers

Allyson Watts Updated 2024 Pic

By Allyson Watts, Senior Vice President

When Florida families open their auto insurance bills, many will see something they haven’t experienced in years: lower rates. According to the Florida Office of Insurance Regulation, the state’s major insurers reduced rates by an average of 6.5% in 2025. State Farm® implemented multiple rate decreases last year. Together, they represent more than 20% in reductions in private passenger auto insurance rates for our Florida customers since fall 2024 - tangible proof that thoughtful policy reform and industry collaboration can deliver real results for consumers.

This isn’t happening by accident. It’s the direct result of Florida’s legislators and insurance regulators recognizing the impact of rising insurance costs - caused by over-litigation - and being willing to hear industry concerns and tackle the real problems behind the rising costs.
 

When Reform Works, Consumers Win

In 2023, the Legislature passed HB 837, a monumental litigation reform package addressing lawsuit abuse. Rather than accept the status quo of ever-increasing litigation, lawmakers enacted reforms that changed the litigation landscape, reducing litigation and lowering litigation costs which in turn lowered the cost of auto insurance for many Florida families. 
 

The Path Forward

While we celebrate this progress, Florida still faces unique challenges that demand ongoing attention and collaboration. Severe weather events, from hurricanes to hailstorms to tornadoes, continue to increase in frequency and intensity. Supply chain disruptions and inflation impact the cost of vehicle parts and repairs. These realities mean maintaining affordable insurance requires constant vigilance and adjustments.

State Farm remains committed to working with public policymakers to advance legislative solutions that continue to improve the insurance marketplace. The success of HB 837 shows what’s possible when thoughtful policymaking and balanced regulatory oversight combine with industry expertise to benefit Floridians.
 

A Model for Sustainable Solutions

Florida’s litigation reform effort offers valuable lessons for other states grappling with similar challenges. By focusing on meaningful solutions rather than short-term fixes, policymakers created a framework to benefit and protect consumers while maintaining market stability. This approach recognizes that a healthy insurance market requires balance – a focus on consumers alongside conditions that allow insurers to operate sustainably and competitively.

The progress we’ve achieved together is significant. State Farm is committed to working with Florida’s leaders to put consumers first while working toward long-term market stability. State Farm has been serving Florida customers for seven decades. Together, we can continue building an insurance market that serves all Floridians effectively and affordably.