Protecting American Consumers Together (PACT) has announced that Florida’s lawsuit abuse reform, known as HB 837, is contributing to lower auto insurance rates, reduced legal costs, and increased consumer savings.
Florida’s HB 837 was signed into law on March 24, 2023. The legislation introduced significant tort reform measures, including reducing the statute of limitations for general negligence claims from four years to two. It also shifted from pure comparative negligence to modified comparative negligence and eliminated one-way attorneys’ fees in many insurance cases. According to Faegre Drinker LLP, these changes aim to reduce frivolous lawsuits and lessen the burden on insurers and policyholders. The law also adjusted bad faith liability rules and restructured recoverable medical damages by limiting what medical expenses can be submitted in court to those actually paid or owed.
Early data indicates that the reform is already having measurable effects on legal and insurance costs. Milliman reports a dramatic drop in litigation over auto insurance glass repairs—from 24,720 lawsuits in Q2 2023 to 2,613 in Q2 2024. Additionally, Florida’s ranking for “nuclear verdicts” payouts fell from second to tenth in 2024. These shifts suggest both fewer large, unpredictable verdicts and fewer minor or borderline claims are being litigated under the new rules.
Regarding auto insurance rates specifically, recent reporting indicates that Florida insurers have begun lowering premiums in response to HB 837 and related reforms. The Tallahassee Democrat-affiliated Tallahassee.com reports an average rate reduction of 6.5% statewide by major insurers, citing data from the Florida Office of Insurance Regulation. Legal cost burdens have eased, which proponents say will continue to translate into savings for everyday consumers as insurance company costs decline.
Protecting American Consumers Together is a consumer advocacy organization focused on highlighting policy reforms aimed at lowering costs and protecting citizens from legal and regulatory abuses. According to its published mission, the group promotes transparency, accountability, and legislative measures that help consumers retain more of their income by reducing inflated costs tied to lawsuits, insurance, and corporate legal practices. By spotlighting Florida’s HB 837 impact, PACT is using state-level evidence to advocate for broader reforms in other states.
