Florida Governor Ron DeSantis announced Wednesday that Progressive auto insurance will provide nearly $1 billion in rebates or credits to its Florida policyholders, citing reduced litigation costs following state insurance reforms.

The average rebate for Progressive customers across Florida will be approximately $300, which may be distributed as either a check or bill credit depending on policy tenure. Florida Insurance Regulation Commissioner Michael Yaworsky is working with other insurance companies to implement similar rebates by January 1, 2026, according to DeSantis.

The announcement, made at a press conference in Sarasota, comes as the top five auto insurance groups in Florida have averaged a 6.5% rate reduction in 2025, compared to a 20% nationwide increase in 2024.

DeSantis attributed the savings to litigation reforms enacted in 2022-2023, which resulted in an almost immediate decline in litigation expenses. In an SEC filing, Progressive stated it has seen lower loss costs on certain claims and favorable conditions in Florida’s personal auto business since the reforms.

For homeowners insurance, 33 companies have filed for rate decreases since January 2024, and 46 have requested no changes. Peninsula, one of the state’s largest insurers, requested an 8.4% decrease for homeowner premiums and 12% for condo owners. Florida recorded the lowest homeowners insurance rate increase nationwide in 2024 at 1%.

Since the reforms, 17 new insurance companies have begun operating in Florida, DeSantis said.

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(Image credit: Insurance Business Mag)

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