As auto insurance premiums continue to climb in Florida, many residents are struggling to keep up with the rising costs.
In 2024, car insurance rates surged by 5.69%, making Florida one of the states where a significant portion of income—around 5%—is spent on insurance premiums, according to CNBC.
This comes on the heels of a nationwide trend, with the average cost of full coverage insurance increasing by 26%, reaching $2,543.
While several factors are driving up these premiums, critics argue that the state’s legal environment, fueled by aggressive advertising by personal injury law firms, is a major contributor.
“Morgan is the largest ambulance chasing law firm in North America,” Jim Esposite said on X. “Bet worth $500 million. Wants to invest in recreational Marijuana in Florida. Hosted mega dollar fun raisers for Obama. He is the reason for higher auto insurance rates.”
Morgan, a Democratic megadonor, has advised and raised funds for influential figures like Bill and Hillary Clinton, Barack Obama and Nancy Pelosi. He recently criticized Vice President Kamala Harris's campaign on the "Cuomo" show, condemning its $1.5 billion spending spree as a major liability for her future political prospects.
Morgan & Morgan, which bills itself the largest personal injury law firm in the U.S., has been a dominant force in the legal advertising space for years.
In 2023, the firm spent $40.3 million on digital ads—an increase of 47% from the previous year—and nearly $240 million on TV commercials.
According to the Institute for Legal Reform (ILR), this surge in spending highlights the growing role of advertising in attracting clients, particularly in the lucrative mass tort market.
According to industry reports, trial lawyers and lead generators collectively spent around $400 million on TV ads for major lawsuits in recent years, underscoring the immense financial resources driving this trend.
Critics argue that this aggressive advertising is contributing to the rise in legal claims, leading to higher costs for insurers, who in turn pass these costs on to consumers in the form of higher premiums.
Florida's tort burden—essentially the cost of legal claims—averages $5,768 per household, amounting to more than $48 billion annually.
According to the ILR report Tort Costs in America, this represents 3.3% of the state’s GDP, with tort costs growing at an average annual rate of 8.7% between 2016 and 2022.
The rapid escalation of tort costs has become a significant economic burden for Floridians and has contributed to the state’s already high auto insurance rates.
However, some experts argue that things could have been much worse for Floridians if not for recent tort reform efforts.
In 2023, Florida passed House Bill 837, which aimed to reduce frivolous lawsuits and curb excessive legal costs, particularly in the area of property insurance. Since the bill passed, the number of litigation filings has dropped by more than half, from 8,000 per month to around 4,000.
This reduction in lawsuits has helped ease some of the pressure on the insurance market, attracting new insurers and improving the availability and affordability of coverage.
R Street reports that despite these improvements, other states, such as Missouri, Georgia and California, continue to grapple with the fallout from excessive punitive damages and aggressive legal tactics.