Ron DeSantis, Governor of Florida | x.com
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 released 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 bolstered the insurance market by curbing litigation abuse, reducing costs, and attracting new insurers. Since 2022, over 477,000 policies have returned to the private market, a notable increase from just 16,408 that year. This shift has led to greater competition and more consumer options. 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 one year.
The American Tort Reform Association (ATRA) has labeled Georgia a "Judicial Hellhole" due to rising nuclear verdicts in trucking and personal injury cases. These substantial jury awards have driven up insurance costs, contributing to higher premiums and a challenging legal environment for businesses.
Georgia ranks among the top ten most expensive states for car insurance, with full coverage costs exceeding the national average by 22%. In 2024, the average annual premium increased by 21% to $2,815 and is projected to rise another 8% in 2025, reaching $3,052 per year. The Athens Banner-Herald attributes these higher premiums to rising litigation costs and increased claims.
Fox 5 reports that Governor Brian Kemp has prioritized tort reform to limit lawsuits and address escalating insurance premiums in Georgia. These premiums have surged between 30% and 100% for businesses in the state. Kemp said that if reforms do not pass, a special legislative session may be necessary. He emphasized that "We cannot afford another year of this," adding that the bill is "pro-Georgia consumer," not "pro-lawyer."
According to his website, DeSantis is a native of Dunedin, Florida. He captained Yale's baseball team, earned honors at Harvard Law School, and served as a Navy Judge Advocate General (JAG) officer in Iraq. Elected in 2018, he has overseen Florida's strong economy, record-low crime rates, and expanded school choice initiatives.
Alerts Sign-up