Insurance Information Institute reports Florida auto insurers cutting personal rates by 6.5%

The Insurance Information Institute announced on the social media platform X that Florida's top five auto insurers are set to reduce personal auto rates by an average of 6.5% statewide. This decision comes in response to reforms aimed at curbing legal system abuse and assignment of benefits (AOB) claim fraud.

Florida has historically faced some of the highest auto insurance costs in the United States, partly due to litigation and AOB fraud. According to the Florida Office of Insurance Regulation, AOB agreements allowed contractors and repair shops to assume policyholder rights, subsequently inflating claims or initiating costly lawsuits against insurers. Legislative reforms introduced in 2019 and expanded in subsequent years eliminated one-way attorney fees and curtailed AOB practices, with the goal of reducing these abuses and stabilizing insurance markets.

The Insurance Information Institute (Triple-I) reports that Florida’s leading auto insurers, representing nearly 80 percent of the market, have filed for an average rate cut of 6.5 percent in 2025. This development marks a significant shift from previous years when Florida drivers experienced rapidly increasing auto premiums. Triple-I attributes these reductions directly to cost savings resulting from fewer inflated claims and decreased litigation expenses due to state insurance and legal reforms.

Litigation patterns in Florida have shifted notably since these reforms took effect. According to actuarial firm Milliman, there was a substantial decline in auto glass lawsuits, which fell from over 24,000 cases in the second quarter of 2023 to just 2,613 cases in the same period of 2024. Milliman analysts concluded that this sharp decline demonstrates how legal system reforms are effectively reducing frivolous lawsuits, lowering insurer costs, and enabling insurers to pass those savings onto consumers through rate decreases and expanded coverage options.

The Insurance Information Institute is a nonprofit communications and research organization providing insights into insurance markets, economics, and public policy. According to its mission statement, Triple-I aims to enhance understanding of insurance by publishing data, analysis, and expert commentary utilized by policymakers, media outlets, and consumers. Its research underscores how reforms and market dynamics affect affordability and access, establishing it as a leading source of independent insurance expertise.