Florida Governor Ron DeSantis announced a 5.6% average decrease in statewide insurance premiums, alongside reductions in auto insurance rates, as the state's insurance market stabilizes. This statement was made in a press release on February 5.
"Homeowners' insurance premium decreases," said DeSantis, Governor of Florida. "Litigation in Florida made for an environment that caused turbulence in insurance markets and steep increases in premiums."
According to the press release, Florida's tort reform has strengthened the insurance market by reducing litigation abuse, lowering costs, and attracting new insurers to the state. Since 2022, over 477,000 policies have returned to the private market, a significant increase from just 16,408 that year. This shift has fostered increased competition and expanded consumer choices. Auto insurance rates are also declining, with major providers such as GEICO reducing rates by 10.5%, Progressive by 8.1%, and State Farm by 6%. Additionally, auto glass repair lawsuits have decreased nearly 90% within a year.
In New Jersey, Barnes & Thornburg reports that third-party litigation funding (TPLF) remains a contentious issue. TPLF allows external financiers to invest in lawsuits for a share of any settlement or judgment. Proponents argue it provides necessary resources for plaintiffs, while critics claim it encourages frivolous lawsuits and increases litigation costs. In 2024, the Supreme Court of New Jersey's Civil Practice Committee declined a proposal for mandatory disclosure of TPLF agreements, leaving the practice largely unregulated.
New Jersey's rising auto insurance rates are partly attributed to increased litigation against insurers following the 2022 Insurance Fair Conduct Act. This legislation made it easier for policyholders to sue over claim denials or delays, leading to higher operational costs for insurers that are passed on to consumers. Consequently, there is a projected 17.2% average premium increase in 2025, with the average annual cost for car insurance nearing $2,400.
According to New Jersey 101.5 and his website, DeSantis is originally from Dunedin, Florida. He captained Yale’s baseball team and earned honors at Harvard Law before serving as a Navy JAG officer in Iraq. Elected in 2018 as governor of Florida, he has led the state towards economic growth, record-low crime rates, and expanded school choice.
