It’s cheaper to Uber in Florida now, the rideshare company announced Monday, attributing the savings to the state’s passage of a new law cracking down on lawsuit abuse.
Uber said it is experiencing lower insurance costs following the passage of House Bill 837 in 2023, which is allowing the company to pass savings on to riders while enhancing earning opportunities for drivers.
The measure, which at the time was a top priority for Gov. Ron DeSantis, then-Senate President Kathleen Passidomo and then-House Speaker Paul Renner, made substantive changes to how lawsuits are filed and litigated in the state, all but eliminating the longstanding statute that allowed a policyholder who successfully sued their insurance company to recoup attorney fees.
The law also modified the state’s comparative negligence system so that a plaintiff found to be more than half responsible for their own injury cannot recover damages. The measure also adjusts Florida’s bad-faith rules so that insurance companies cannot be sued for bad faith if, before a complaint is filed or within 90 days of being notified of the complaint, they tendered the lesser of the policy limits or the amount demanded by the claimant.
The law has saved riders tens of millions of dollars on Uber rides, the company said. As of September, government-mandated insurance represented just 19% of a rider’s Uber fare, a drop of two percentage points from one year earlier. The company said fares have been as much as six percentage points lower year over year than in other states, particularly those with more robust insurance mandates, rigid pay standards, or additional fees.
“Florida’s commitment to addressing lawsuit abuse is delivering tangible results for Uber riders and drivers in the state,” said Javi Correoso, Uber’s Head of Federal Affairs and South U.S. Policy. “While other states continue to see auto insurance rates climb, Florida is moving in the opposite direction. By stabilizing the insurance market, the 2023 tort reform legislation has enabled us to keep Uber rides affordable and accessible across the state.”
Across the country, Uber maintains commercial auto liability insurance on behalf of drivers, including at least $1 million in coverage for property damage and injuries to riders or third parties when the driver is at fault during a trip. While the coverage protects riders and drivers on the platform, as well as others who share the road with them, the high limits have served as a welcome to personal injury litigation, the company said in its announcement.
