Florida Progressive Customers to Receive Rebates: Key Details Unveiled

Florida Governor Ron DeSantis recently announced significant developments for auto insurance policyholders in the state. In a public appearance at the Westin Hotel in Sarasota on October 22, he revealed that 2.7 million customers of Progressive Insurance will benefit from approximately $1 billion in rebate credits by 2026.

Details of the Florida Progressive Insurance Rebates

The specific amount of rebate each policyholder will receive is yet to be determined. However, Governor DeSantis indicated that the average refund is expected to be around $300 per customer. The rebates will be based on the “earned premium” for 2025, which reflects the portion of the insurance premium collected by Progressive.

Expected Rebates and Distribution

• Total Rebates: Approximately $1 billion for 2.7 million policyholders.
• Average Rebate: Estimated at $300 per policyholder.
• Timeline: Customers can expect credits in their accounts in 2026.

Progressive spokesperson Jeff Sibel stated that policyholders should prepare for either a check or a credit on their next bill. If a policyholder has no balance due, or if their credit exceeds their upcoming payment, the remaining balance will be returned via their regular payment method.

Impact of Reforms on Auto Insurance Premiums

Governor DeSantis attributed these rebates and decreasing auto insurance premiums to recent legislative reforms aimed at curtailing excessive litigation costs. Florida has seen a significant reduction in insurance litigation, which previously represented 78% of the nation’s costs with only 8% of claims. Such reforms have reduced incentives for attorneys, leading to a decrease in lawsuits.

Projected Rate Decreases

• 2023 Increase: 31.7%
• 2024 Increase: 4.3%
• 2025 Decrease: Projected at 6.5%

These changes have started to reflect in auto insurance rates, which had seen dramatic increases in previous years. The Office of Insurance Regulation reported these adjustments, indicating that the overall environment for consumers is improving.

Both DeSantis and Florida Insurance Commissioner Mike Yaworsky expressed optimism about continued negotiations with other auto insurers to provide similar rebates statewide. The governor emphasized the benefits of these changes, noting that the financial relief from litigation costs is now benefiting consumers instead of attorneys.