Allstate Corp. is pointing to Florida as a clear example of how changes in laws can lead to lower car insurance prices. The company’s CEO, Tom Wilson, discussed the impact of recent legal reforms during Allstate’s fourth-quarter earnings call, highlighting how cutting down on lawsuits helped bring down insurance costs for drivers in Florida.
Wilson explained that reforms aimed at limiting unnecessary legal cases, especially minor accident lawsuits, have made a noticeable difference. Over the last 18 months, the top five auto insurers in Florida have lowered their rates by an average of nearly 6%, partly because there are fewer lawsuits following the new rules. He suggested that other states might tackle similar issues by focusing on these small but costly legal battles.
Bodily injury claims, which happen when an injured person sues after a car accident, have been a major factor raising costs. Wilson noted that these claims have gone up by 52% in five years, largely due to more lawyer involvement and bigger settlements. Meanwhile, physical damage costs have climbed about 47%, and claims involving uninsured or underinsured drivers are up 72%. Allstate says these rising costs have pushed insurance companies to the edge, resulting in nearly zero profit from underwriting.
In response, Allstate has already lowered its Florida auto insurance rates by as much as 7% and is making coverage easier to get. This move reflects a wider trend among insurers. By November 2025, Florida’s insurance regulator reported dozens of requests from insurers either to cut rates or keep them the same, showing a real shift in the market.
Support for Florida’s legal changes is growing across the insurance industry. Progressive’s CEO, Tricia Griffith, called the reforms “profound,” praising state leaders for improving the market. David Sampson, head of the American Property Casualty Insurance Association, credited the new laws with attracting 17 new companies to Florida and helping homeowners save money on insurance. He said fewer lawsuits and stronger insurer participation have made the market more stable and affordable.
The National Association of Insurance Commissioners also noted that the reforms have improved profits for insurers and reduced the number of policies held by the state-backed Citizens insurance program. Tim Cerio, CEO of Citizens, said the changes have helped stabilize the market and bring private companies back into the fold.
Florida’s experience is catching the eye of officials in other states. Wilson said Louisiana and Georgia have recently taken steps to address similar litigation problems and hopes these efforts will help bring down costs in those states too.
Overall, Florida’s legal reforms are showing how tackling lawsuit abuse can directly lower insurance prices and encourage a healthier market. Other states may soon follow this lead as they look for ways to keep car insurance affordable for drivers.