Progressive Corp. is issuing close to $1 bn in premium refunds to Florida auto policyholders after regulators approved credits tied to litigation reform savings.
Ron DeSantis said in October state regulators secured the refunds following declines in litigation expenses across Florida’s auto market.
Tort reform legislation signed in 2022 and 2023 targeted what he described as excessive and frivolous lawsuits, which had driven up carrier costs and consumer premiums.
Refunds are now reaching mailboxes. The average rebate stands near $300, though amounts vary based on policy duration and number of covered drivers. Some policyholders report larger credits.
Cassidy Katherine Rae Caraker, a Winter Haven claims litigator adjuster, said she received a $769 credit covering February and March payments. Her typical premium runs $330 per month for two vehicles and two drivers. Her April bill will drop to $218.
Caraker, who has worked in auto insurance for roughly a decade, said Progressive implemented consecutive rate increases in prior years to restore profitability. She suggested that strategy may have weighed on retention, even if it stabilized margins.
Progressive began notifying eligible customers in mid-January. Credits are prorated based on each policy’s premium during calendar year 2025. The company aims to issue credits within weeks of notification.
Sibel said loss costs for certain personal auto claims in Florida have come in lower than expected since the 2023 reforms. Financial performance in the Florida personal auto book has been strong.
The absence of major hurricanes in 2025 also reduced pressure on claims severity and frequency.
Under Florida statute, insurers face profit caps in specific personal auto lines. Progressive exceeded the allowable threshold for the 2023-2025 accident year period and is returning estimated excess profits to eligible policyholders.
DeSantis said he expects other major carriers operating in Florida, including Allstate Corporation and GEICO, to consider similar actions. Neither company has outlined plans publicly.
According to Beinsure, the refunds reflect a combination of litigation reform impact, moderated catastrophe activity and rate adequacy achieved in prior cycles.
For Florida drivers accustomed to steady increases, a rebate changes the narrative, at least for now.
