Florida’s top five auto insurance groups are cutting personal auto rates by a statewide average of 6.5 percent due to legislative reforms that addressed legal system abuse and assignment of benefits (AOB) claim fraud, the Florida Office of Insurance Regulation (OIR) announced this week.
“Citizens of the Sunshine State are now clearly seeing the benefits of a more stable and affordable insurance marketplace,” Triple-I CEO Sean Kevelighan said.
State leaders credit the reforms for driving down both average rates and loss ratios, with Florida now reporting the lowest personal auto liability loss ratio in the United States, OIR said. Improved underwriting results and reduced litigation are helping insurers lower premiums, while increased consumer shopping is boosting competition and affordability across the state’s auto insurance market.
Resistance to reforms persists
Despite the measurable benefits to consumers, these reforms are under attack in the state legislature. HB 947 and HB 837 would undo much of this progress.
“The continued reduction in auto insurance rates is yet another sign that Florida’s reforms are working,” said Florida Gov. Ron DeSantis. “We will protect our reforms from those who seek to undo them and continue to fight for Floridians.”
Other states, including Georgia and Louisiana, are following Florida’s lead.
Premium relief for Florida drivers comes on top of significant improvements in the state’s property insurance market, where many consumers are securing better rates for their home insurance due to legislative reform and a competitive market with more than a dozen new carriers, Triple-I Director of Corporate Communications Mark Friedlander told BestWire.
“For many years, unscrupulous glass vendors preyed upon Florida drivers at car washes, gas stations, and shopping center parking lots with promises of gift cards in exchange for signing over their glass repair,” Friedlander said. “When insurers rejected these highly inflated claims, frivolous lawsuits followed.”
Learn More:
Disasters, Litigation Reshape Homeowners’ Insurance Affordability
New Consumer Guide Highlights Economic Impact of Legal System Abuse and the Need for Reform
Florida Bills Would Reverse Progress on Costly Legal System Abuse
Georgia Targets Legal System Abuse
Louisiana Reforms: Progress, But More Is Needed to Stem Legal System Abuse
Triple-I Issues Brief: Florida Reforms Bear Fruit as Premium Rates Stabilize (Members Only)
Triple-I Issues Brief: Georgia Insurance Affordability (Members Only)
Triple-I Issues Brief: Louisiana Insurance Market (Members Only)