Progressive to return nearly $1 billion to Florida auto insurance customers, DeSantis says

"Progressive, one of the nation's top auto insurance companies, plans to return nearly $1 billion to Florida policyholders, Gov. Ron DeSantis announced Wednesday. Policyholders will receive an average of $300, DeSantis said, that will show up either as a refund check or a credit toward coverage renewal. DeSantis credited insurance reforms enacted by Florida's Legislature in 2022 and 2023 with reducing auto insurers' losses and making it possible for the state's top five companies to request a combined 6.5% rate reduction in 2025."

"The reforms, he said, reduced insurance litigation by making it more difficult for plaintiffs attorneys to recover steep legal fees. The reforms followed years of rate increases resulting from claims disputes that saw legal fees far exceeding what was recovered for policyholders, he said. "The dispute would be over, like, $50,000, and then the lawyer ends up getting like $350,000. Well, why would we want a system that encourages that?" he said."

"In late July, Progressive stated in a filing to shareholders that, thanks to the reforms, premiums collected from its policyholders could exceed what's allowable by Florida law over three years. In September, Progressive projected that it will have collected $950 million in excess profit from 2022 to 2025 and planned to provide credits to its 2.7 million personal auto policyholders "active at December 31, 2025.""

Progressive will return nearly $1 billion to Florida policyholders, totaling an average of $300 per policyholder as refunds or credits toward renewals. Florida insurance reforms enacted in 2022 and 2023 are credited with reducing insurer losses and litigation, enabling the state's top five companies to request a combined 6.5% rate reduction for 2025. The reforms tightened recovery of plaintiffs' attorneys' fees after years of claims disputes produced legal fees far exceeding policyholder recoveries. Progressive projected it could collect $950 million in excess profit from 2022–2025 and plans to issue credits to 2.7 million personal auto policyholders active at December 31, 2025. Regulators are monitoring other companies for statutory thresholds.

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