Florida insurance reforms are being cited for a reduction in rates to drivers in the state as litigation costs decline, according to Root Insurance.

Last week, the tech-driven car insurer announced new rates that will reduce auto insurance premiums for Florida customers by 15% on average, with some policyholders seeing more significant decreases.

Serving Florida drivers since 2022, nearly all its 52,000 policyholders in the state will see lower premiums as a result of the rate reductions.

Eligible customers are expected to save about $400 per year on average, representing approximately $21 million in annualized savings, Root’s announcement stated.

As litigation-related costs decline due to state reforms, insurers are able to more accurately project future claims expenses and price coverage accordingly, creating opportunities to pass those savings on to consumers.

“Florida’s insurance market continues to improve as costs continue to decline under the reforms, and Root’s ability to accurately price risk allows us to reflect those improvements in what our customers pay,” said Alex Timm, founder and CEO of Root.