$1 Billion in Auto-Insurance Refunds for Floridians
Florida drivers are getting a rare piece of good financial news. In late 2025, regulators announced that a major auto insurer will return nearly $1 billion in refunds to policyholders across the state. It’s the largest consumer refund in Florida’s auto-insurance history — and could mark the start of a more stable, competitive market after years of volatility.
This article explains what triggered the refund, how much money you can expect, who qualifies, and what this means for your future premiums. Whether you’re a Progressive customer or simply want to understand Florida’s changing insurance landscape, here’s what you need to know.
The Big Announcement: Florida’s $1 Billion Auto-Insurance Refund
On October 22, 2025, Governor Ron DeSantis and the Florida Office of Insurance Regulation (OIR) announced that Progressive Insurance would issue approximately $1 billion in credits and refunds to its personal-auto policyholders statewide.
Officials attributed the refund to improved profitability, fewer lawsuits, and Florida’s excess-profit statute — a rule requiring insurers to return profits above a set limit over a three-year period. When insurers make too much money from premiums compared to claims, that surplus must be returned to consumers.
Why Florida Drivers Are Seeing Refunds Now
- Excess-Profit Law: Florida Statute 627.066 compels insurers to refund “excess underwriting gains” once profits exceed a regulated threshold. (DontGetHitTwice.com)
- Legal Reforms: Florida’s tort-reform laws (HB 837 & SB 2A) reduced litigation expenses, improving insurers’ loss ratios and creating financial breathing room.
- Better Claims Experience: Fewer crashes, anti-fraud tech, and lower repair costs all contributed to excess profitability in 2024–2025.
As a result, regulators determined that Progressive’s gains had surpassed the allowable threshold, triggering this record refund under Florida law.
Who Qualifies & How Much You’ll Receive
- Total refund pool: $1 billion
- Estimated eligible customers: 2.7 million Florida personal-auto policyholders
- Average refund: About $300 per policy (varies by premium & term)
- Timing: Refunds or credits will be applied automatically in early 2026 — no application required
- Method: Most drivers will see a bill credit; others will receive a mailed check
Other carriers are now reviewing their own profitability data. If similar thresholds are exceeded, more refunds could follow. (Lisa Miller Associates)
How This Impacts Florida’s Auto-Insurance Market
- Lower Rate Filings: Top auto-insurer groups have proposed average 6 % rate decreases for 2025, reversing years of double-digit spikes (Finance Yahoo).
- Improved Competition: Better profitability invites more insurers back into the market, giving consumers more choice.
- Policyholder Relief: The refunds directly lower household costs and ease inflation pressure for Florida families.
Industry observers note that Florida’s 2023 reforms — limiting “bad-faith” lawsuits and curbing attorney-fee multipliers — cut costs that once made the state one of the most expensive for auto coverage.
What This Means for Everyday Drivers
- Check your policy status. If you’re a Progressive auto-policyholder in Florida as of December 31, 2025, you’re automatically eligible for a credit or refund.
- Watch for communication. Progressive will notify customers by email or mail before refunds are processed.
- Review your renewal offer. Lower base rates could make your next term cheaper.
- Compare quotes. A stabilizing market means now’s the time to re-shop your auto coverage.
Understanding Florida’s Excess-Profit Rule
Florida’s excess-profit statute prevents insurers from keeping windfall gains that come from unexpectedly low claim costs. It caps profitability to protect consumers while ensuring carriers still earn a fair return. The OIR compares total underwriting profits over a three-year window, and if results exceed the benchmark, the excess is returned to policyholders. (Lisa Miller Associates)
Long-Term Outlook for Florida Auto-Insurance Rates
Will the savings last? Analysts expect a more stable market, though not permanently lower prices. Key influences include claim frequency, reinsurance costs, and weather-related repair expenses. Still, 2025’s refund reflects a long-awaited correction.
- Moderate rate trends: Experts project 2 – 4 % annual adjustments instead of the 15 – 30 % swings of prior years.
- New entrants: Smaller regional insurers may return, expanding options for safe drivers.
- Transparency: After a billion-dollar refund, consumers expect clearer explanations of where premiums go.
Steps to Take Now
- Review your auto-insurance declarations and renewal statement for any “credit applied” notation.
- Keep your mailing address and online account details current to ensure refund delivery.
- Compare quotes again in mid-2026 as new carriers enter the market.
- Consider bundling auto and home policies for additional multi-policy discounts.
Frequently Asked Questions
- What caused the $1 billion refund for Florida drivers?
- It was triggered by Florida’s excess-profit law, which requires insurers to return profits above a three-year threshold. Stronger underwriting and lower claim costs pushed Progressive’s profits beyond that limit.
- Who qualifies for the refund?
- All Progressive personal-auto policyholders with active Florida coverage as of December 31, 2025 — roughly 2.7 million drivers.
- How much will I get back?
- The average refund is around $300 per policyholder, depending on premiums and policy term.
- When will refunds arrive?
- Credits or checks are expected in early 2026. Customers will receive official notifications first.
- Do I have to apply?
- No. Refunds are automatic; no application is required.
- Could other insurers issue refunds too?
- Yes. Florida’s law applies to all auto insurers. If others exceed the profit limit, regulators can mandate similar payouts.
- Will my premiums go down permanently?
- Rates may decrease through 2025 – 2026 thanks to reform and competition, but future changes will still follow claim trends and inflation.
- Is this refund taxable?
- Typically no, as it’s a return of premium already paid. Confirm with your tax advisor.
- Does it include commercial policies?
- No. The refund applies only to personal-auto coverage.
- Where can I ask questions or report issues?
- Contact Progressive’s customer service or the Florida Office of Insurance Regulation.
Florida’s billion-dollar refund isn’t just a one-time win — it’s a sign of a more balanced market ahead. If you are looking for auto insurance, contact GreatFlorida Insurance.
Related Reading: Florida Auto-Insurance Market Trends | How Tort Reform Affects Insurance Rates | Tips to Lower Your Auto Insurance Premium
