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Florida auto insurers cut rates as tort reforms reduce litigation
GEICO filed two more rate decreases, affecting more than 1.3 million policyholders, as Florida’s personal auto liability loss ratio reached 52.5% in 2025.
Florida’s auto insurance market is seeing broad premium reductions as the state’s civil litigation reforms begin to show measurable results, with carriers cutting rates alongside falling litigation and improved loss performance. Insurance Business reports that the turnaround has been linked to legislation signed in March 2023.
The reforms include shortening the negligence statute of limitations from four years to two, adopting modified comparative negligence, and ending one-way attorney fee awards in most cases, changes that reduced the financial incentive to litigate minor accidents. According to the governor’s office data cited by Insurance Business, property insurance litigation filings declined 23% year-over-year from 2023 to 2024, and continued falling each month through 2025.
GEICO, Florida’s second-largest auto insurer, filed two additional rate decreases that will lower premiums for more than 1.3 million policyholders, marking its third rate reduction over the past 12 months. The article says the cumulative impact over two years totals $500 million in annual premium reductions.
The shift is also showing up in underwriting, with Florida’s personal auto liability loss ratio reaching 52.5% in 2025, the lowest in 15 years and the lowest in the nation, according to FLOIR data referenced by Insurance Business. The outlet adds that Florida’s top five auto insurers, which hold about 78% of the state’s personal auto market, indicated an average 8% rate decrease for 2026, compared with -7.4% in 2025 and +31.7% in 2023.