Florida auto insurance policyholders are beginning to see real financial relief, with Progressive issuing nearly $1 billion in credits to customers and regulators pressing other major carriers — including GEICO — to follow suit.
Progressive Leads the Way
Progressive, one of the nation’s top auto insurance companies, has already returned nearly $1 billion to Florida policyholders since Gov. Ron DeSantis announced last October. Policyholders are expected to receive an average of $300 each.
Progressive is issuing credits only to drivers with active policies as of December 31, 2025. Even customers who were insured with Progressive in 2023 and 2024 won’t receive any credit if they switched to another insurer before year’s end.
Progressive began notifying eligible customers about the credits in mid-January. “Our goal is to have the credits issued within several weeks after eligible policyholders receive their notification. Individual credits are prorated based on each policy’s premium during calendar year 2025,” Progressive spokesperson Jeff Sibel said.
The refunds are not voluntary. Auto insurers are statutorily obligated under Section 627.066, Florida Statutes, to return excess profits to policyholders when applicable. Progressive acknowledged in a September SEC filing that its personal auto profit in Florida for the 2023–2025 period would likely exceed the statutory profit limit.
Why Now?
The refunds stem directly from sweeping tort and insurance reforms enacted by Florida in 2022 and 2023. DeSantis credited those reforms with reducing auto insurers’ losses and enabling the state’s top five companies to request a combined 6.5% rate reduction in 2025, down from an average increase of 4.3% in 2024 and a staggering 32.7% in 2023. The reforms made it more difficult for plaintiffs’ attorneys to recover steep legal fees in insurance disputes.
Other Carriers Expected to Follow
DeSantis and Insurance Commissioner Michael Yaworsky held a press conference in October stating that more auto insurers may issue similar refunds in the near future. “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 — however they decide to do it,” DeSantis said.
The Florida Office of Insurance Regulation (OIR) stated it is aware that several other auto insurance companies “may be approaching the statutory threshold” and urged them “to proactively report profits and credits to OIR before the Office orders them to do so.”
DeSantis said he expects Florida’s other major auto insurance carriers, including Allstate and GEICO, could follow Progressive. As of the most recent reports, those companies had not responded to media queries about their specific plans.
The OIR has identified Florida’s other top auto insurers — GEICO, State Farm, Allstate, and USAA — as companies regulators are actively negotiating with. GEICO has filed a 10.5% rate decrease, State Farm filed a 10.1% decrease, AAA lowered rates by 15% through three separate reductions, and USAA filed a 7% decrease — moves that could reduce, but not necessarily eliminate, excess profit exposure under Florida law.
State Farm has also separately announced a $5 billion dividend to customers nationally, and USAA announced a $3.8 billion payout to members across states in 2025.
What Policyholders Should Know
Progressive customers who were active as of December 31, 2025, do not need to take any action — credits will be applied automatically. For customers of other insurers, no formal announcements have been made yet, but regulators continue to push for broader relief across Florida’s auto insurance market.
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