How Florida's Tort Reform Affects Your Auto Insurance Claim

In March 2023, Florida Governor Ron DeSantis signed one of the most significant insurance law overhauls in state history. Senate Bill 2A made sweeping changes to how personal injury and property insurance claims are handled in Florida — and the effects are rippling through the auto insurance market years later.

The End of One-Way Attorney Fees

For decades, Florida law allowed policyholders to collect attorney fees from insurance companies if they won a lawsuit related to a claim — even if the recovery was just $1 more than the insurer's original offer. This rule, known as one-way attorney fees, was a major driver of insurance litigation in Florida.

The 2023 reform eliminated one-way attorney fees for most property and casualty claims. Now, each side generally pays its own legal costs. The intent is to reduce frivolous lawsuits; critics argue it also makes it harder for injured parties to hire attorneys when insurers lowball claims.

Shorter Statute of Limitations

The reform cut Florida's statute of limitations for negligence-based auto accident claims from 4 years to 2 years. If you were injured in a car accident, you now have a smaller window to file a lawsuit. This makes prompt action after an accident even more important.

Comparative Fault Changes

Florida moved from a pure comparative negligence system to a modified comparative negligence system. Under the old rule, even if you were 99% at fault for an accident, you could still recover 1% of your damages from the other party. Under the new rule, if you are found to be more than 50% at fault, you are barred from recovery.

What This Means for You

The practical impact on most drivers: fewer nuisance lawsuits means insurance companies face less litigation cost, which theoretically should help stabilize premiums over time. However, drivers with legitimate serious injury claims need to act faster and understand that the legal landscape has shifted.

The most important takeaway: make sure you have adequate UM/UIM coverage, because recovering from the at-fault driver is now more difficult. Call FloridAuto.com at 800-616-1418 — we'll make sure your coverage is built for Florida's new legal environment.