Progressive to pay back $1 billion to Florida auto policyholders after too much profit
Progressive will refund nearly $1 billion to Florida auto policyholders due to improved market conditions, according to press release from Gov. Ron DeSantis’s office.
He says the refunds reflect the reduced losses and strong savings tied directly to the state’s tort and insurance reform efforts.
“Florida’s insurance market is stabilizing with decreasing auto and home insurance rates, and frivolous litigation is declining,” DeSantis says in the release. “This year, Florida’s top five auto insurers are averaging over a 6% rate reduction, and we’ve secured nearly $1 billion in credits for Progressive auto policyholders — and the other carriers are expected to follow suit soon. Also, 17 new companies have entered the homeowners’ market, 33 companies have filed for rate decreases, and reinsurance market rates have declined.”
Fox 13 reports that DeSantis told a crowd during an Oct. 22 event that the rebate could come as a check or as a credit on a bill. He said the rebate will depend on how long a customer has been with Progressive, but the average policyholder will get a $300 rebate.
Progressive filed an SEC filing earlier this year that states it may have to rebate customers because it has seen a lower loss cost on certain types of personal auto accident claims.
“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,” the filing says.
Progressive said in the filing that it has lowered its personal auto rates twice in the last year; however, despite these actions, the company’s profit for personal auto in Florida for the 2023–2025 period may exceed the statutory profit limit.
DeSantis’s press release says Progressive recorded a $950 million policyholder credit expense, representing a current profit earned during the three years ending Dec. 31, 2025.
“The company expects to provide credits to active policyholders as of Dec. 31, 2025 — estimated at approximately 2.7 million personal auto policyholders in Florida,” the release says.
Florida Statutes 627.066 and 627.915 require auto insurers to report excessive profit. It also outlines formulas that insurance companies should use to determine their underwriting profits.
DeSantis’s release says that the state is aware of several auto insurance companies that may be approaching the statutory threshold.
Insurance Commissioner Mike Yaworsky recently announced a decline in auto insurance rates for the state via a press release in late July.
He said the top five auto insurance groups were indicating an average 6.5% rate decrease, down from an average 4.3% increase in 2024 and a 31.7% increase in 2023.
The release also said the state was experiencing a reduction in the personal auto liability loss ratio, down to 53.3%.
“The continued reduction in auto insurance rates is yet another sign that Florida’s reforms are working,” said DeSantis in the release. “We will protect our reforms from those who seek to undo them and continue to fight for Floridians.”
DeSantis also announced rate reductions in February, with Progressive decreasing its rate by 8.1% at that time.
A 2023 bill signed by DeSantis banned assignment of benefits for glass repair in the state. The press release says litigation related to auto glass repairs has dramatically declined since the bill passed, dropping from 24,720 lawsuits in Q2 2023 to just 2,613 in the same period in 2024.
Another bill, SB 2D, signed in 2022, eliminated one-way attorney fees related to assignment of benefits, the release says. It says the bill also helped reduce auto glass repair lawsuits in the state.
The Florida Phoenix reports DeSantis also warned members of the House of Representatives not to try to change property and auto insurance laws when the regular session starts in January.
“Lobbyists and onlookers have speculated that there will be another attempt to eliminate the state’s personal injury protection requirements (PIP) while Miami Republican Rep. Daniel Perez, an attorney, remains speaker of the House,” the newspaper writes.
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