travelers insurance survey

The word from Florida after a landmark reform policy decision;

Florida Gov. Ron DeSantis announced last Wednesday consumers will be receiving a major financial windfall – in the form of auto insurance premium credits – thanks to the state’s tort reforms that went into effect two years ago.

Insurance Commissioner Mike Yaworsky confirmed the Florida Office of Insurance Regulation secured funds from Progressive, which is the first major auto carrier to agree to the terms. DeSantis also pledged the state is negotiating reimbursements from other major carriers.

Refunds and Rate Reductions 

State regulators have secured nearly $1 billion in premium credits for Progressive auto insurance policyholders based on a state regulation requiring the return of excess auto insurance profits.

DeSantis also noted the top five auto insurance groups, which account for 78% of the Florida auto market, have averaged a 6.5% reduction in rates for 2025. In addition to Progressive, this includes Allstate, State Farm, USAA, and GEICO. Additionally, Liberty Mutual has filed for auto rate reductions in Florida this year, according to the governor.

Tort Reforms to Thank for Reduced Rates and Refunds

DeSantis and Yaworsky cited 2023 tort reform in the state as the catalyst for the refund and rate reductions.

DeSantis signed a long-awaited comprehensive tort reform bill, HB 837, into law in March 2023.

The legislation took several key steps to combat legal system abuse, including:

Reducing statute of limitations for negligence
Imposing a “modified” comparative negligence standard
Curbing bad faith lawsuits
Establishing good faith standards for insureds and third-party claimants
Imposing a new standard of proof for medical expenses to prove damages
Reallocating fault in negligence actions pertaining to premises liability

DeSantis and Yaworsky explained these reforms successfully shifted money away from excessive litigation costs that were drivers of increasing home and auto premiums.

“Florida was really considered a litigation hellhole by a lot of folks,” DeSantis said. “That contributed to consumers having to bear more costs with respect to auto insurance.”

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