Progressive to Refund Nearly $1 Billion to Florida Drivers in 2026

Progressive will issue a refund to many of its 2.7 million Florida car insurance customers in 2026. During that time, the company will repay policyholders nearly $1 billion in excess profits accumulated over the past three years.

Each eligible Progressive car insurance customer will receive an average of $300 per vehicle in refund credits or as a check, according to Florida Gov. Ron DeSantis. 

Refund amounts will depend on each customer’s policy length and specifics.

“The actual credit amount, for each policyholder, will vary in proportion to each auto policy’s earned premium during calendar year 2025 and will depend on final year-end financial results for 2025,” said Progressive spokesman Jeff Sibel, according to reporting from the Sun Sentinel.

Progressive is only issuing credits to drivers who have active policies on or after Dec. 31, 2025. Even Progressive customers who had car insurance in 2023 and 2024 won’t receive any refund credit if they switched to another insurer this year.

Why is the refund happening?

The Florida Legislature passed insurance reform in 2023 that aimed to stabilize the state’s property insurance market, decrease insurance litigation, improve economic circumstances, and protect consumers.

The insurance reforms appear to be working, as Florida has seen a decline in average car insurance rates this year.

The state’s five largest auto insurance companies, which make up 78% of Florida’s auto insurance market, have experienced an average rate decrease of 6.5% in 2025. This is a notable decrease compared to recent years, which saw average insurance rate increases of 4.3% in 2024 and 31.7% in 2023.

“Since Florida insurance reform was enacted in early 2023, we have seen lower loss costs on certain types of personal auto accident claims and favorable reserve development, and we have experienced strong profitability in our Florida personal auto business,” Progressive said in a September filing with the U.S. Securities and Exchange Commission.

Florida statute requires insurance companies operating in the state to return excess profits to customers.

“Despite actions to lower rates in the last year, it is probable that our personal auto profit in Florida for the 2023 to 2025 period will exceed the statutory profit limit that a Florida statute imposes on the profit that any insurance group can earn on personal auto insurance over any three-calendar-year period,” Progressive acknowledged in the September filing.

What’s next: Will more insurers provide refunds?

Gov. DeSantis and Insurance Commissioner Michael Yaworsky held a press conference in October to announce Progressive’s intent to refund policyholders nearly $1 billion. They stated that more auto insurers may issue similar refunds in the near future.

“Commissioner Yaworsky has been working with these companies,” said DeSantis. “Given all the money that’s been saved with these reforms, looking back even a couple of years, consumers now have an ability — or even a right — to get some of these refunds.”

Yaworsky is undertaking further refund negotiations with Florida’s other major car insurance companies, according to DeSantis.

“I don’t think there’s any reason to think these other companies are any different than Progressive. I think you’re going to see rebates, maybe checks [or] however they decide to do it,” he said.

More information for Florida drivers with coverage from other major auto insurers is expected to be available by January, according to DeSantis.

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