Editor’s note: No significant tort-reform legislation is currently making its way through the Alabama Legislature. But at least one state senator is calling for action.
Good news continues to roll out of the Sunshine State.
Florida Governor Ron DeSantis recently announced significant insurance rate relief for Florida homeowners and auto policyholders that will put money back into Floridians’ pocketbooks and ease the strain on small businesses’ balance sheets.
For years, insurance companies, particularly homeowners,’ were leaving the state in droves and insurance premiums were increasing at unsustainable levels. A huge cause of the crisis was driven by legal system abuse.
But Florida’s elected officials recognized they needed to act. And they did.
In 2023, the Governor and Florida’s legislative leaders passed a comprehensive reform package that addressed major drivers of insurance premiums, such as unfair attorneys’ fees, “phantom damages” for medical expenses, and modernization of Florida’s comparative fault statute, among other things.
The results speak for themselves.
Major auto insurers recently filed for premium reductions: State Farm (-10.1%), Florida Farm Bureau (-8.7%), AAA (-15%), Progressive (-8%), and USAA (-7%).
This comes on the heels of Progressive’s nearly $1 billion in rebates to auto policyholders announced last fall, and Uber also reported six percent lower fares due to lower insurance-related costs, saving riders tens of millions of dollars.
A recent study also found that because of Florida’s 2023 reforms, the state’s insurance costs are 14.5% lower than the would have been, some $4.2 billion was added in annual gross product, and more than 29,000 jobs were created.
While Florida turned the corner, the warning signs are beginning to flash for Alabama.
On Jan. 15, the Alabama Department of Insurance released its Alabama Liability Insurance Coverage Data Call report, analyzing the impact of liability insurance coverage on insurance claims costs. The report suggests that Alabama’s insurance market is being strained by a sharp rise in litigation-driven claims.
Despite claim volumes staying essentially flat in Alabama from 2020-2024, liability claim severity jumped 59%, and the average payout per claim rose 45%—far outpacing the 23% rate of inflation, which includes rising healthcare costs, wages, and consumer goods.
Alabama is also seeing a surge in large claims: $1 million-plus claims have doubled, putting even more upward pressure on costs.
And 26% of legal claims stay open for more than two years, driving up legal fees, increasing unpredictability, and pressuring defendants to settle regardless of merit.
These are real costs that are now placed on real Alabamians and there are real, tangible impacts.
- Legal uncertainty drives prospective businesses away from our state.
- Rising premiums make auto insurance unaffordable and keep workers on the sidelines.
- Unaffordability discourages small business expansion and growth.
Alabama’s legislature and executive leadership have worked tirelessly to counter rising costs with our pro-growth legislative packages, including The Game Plan (2023); Working for Alabama (2024); and Powering Growth (2025) because we know predictability and stability attract investment and competition, which drives prices down and fuels growth.
However, our hard work and the momentum we have built can be stopped or reversed if we do not also tackle legal system abuse.
And it is not just our neighbors in Florida who are getting ahead. Georgia passed significant legal reform in 2025. Louisiana and Oklahoma followed suit. In 2026, Kentucky, South Carolina and Indiana also are taking a serious look at addressing their civil justice issues and protecting hardworking families, businesses, and workers.
These are states Alabama directly competes with for projects, workers, and business—not just in college football.
We have worked too hard to have Alabama be at a competitive disadvantage. We cannot afford to remain on a path of increased unaffordability, limited growth, and higher costs for every family and employer.
If we do not move forward and address our legal system abuses head-on, Alabama will be left behind.
Josh Carnley is a farmer and owner of SanBuck Insurance, an agency with offices in Adalusia, Enterprise and Troy, Alabama.
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