Why Progressive Is Issuing State-Required Refunds in Florida — And What Policyholders Should Know

Florida auto insurance policyholders insured with Progressive may soon notice a credit on their bill or receive a refund check. In early 2026, Progressive is issuing nearly $1 billion in refunds and credits to approximately 2.7 million Florida auto policyholders, with the average refund reported to be around $300 per customer.

These refunds are not promotional discounts and are not optional. They are the result of Florida insurance regulations that require insurers to return excess profits to consumers when profitability exceeds state-approved levels.

This article is intended for general informational purposes only and is based on publicly available regulatory and industry reporting.

Why These Refunds Are Occurring

Insurance in Florida is regulated at the state level, and insurers must regularly justify their rates to regulators. When an insurer’s profits exceed what the state considers reasonable, Florida law allows — and in some cases requires — that excess premium be returned to policyholders.

In Progressive’s case, regulators determined that profitability over the past three years exceeded acceptable thresholds. A major contributor was reduced litigation costs, which significantly lowered expenses for auto insurers operating in Florida.

Florida officials, including Ron DeSantis, have publicly pointed to declining litigation as a key reason insurers have recently seen improved financial results.

Key Details on Progressive’s Florida Refunds

Eligibility

• Florida auto insurance customers who had an active Progressive policy as of December 31, 2025

Refund Amount

• The average refund is approximately $300

• Individual refund amounts vary and may depend on:

  • Length of time insured

  • Total premiums paid

  • Policy structure and payment method

How Refunds Are Distributed

• Most eligible customers will receive the refund as a credit applied to future policy bills

• Customers who paid their policy in full may receive a direct refund check

Timeline

• Customer notifications began in mid-January 2026

• Credits and checks are expected to be issued shortly thereafter

Is Any Action Required?

• No. Eligible customers do not need to take action to receive the refund.

Why Litigation Trends Matter for Insurance Pricing

Legal expenses are a major cost driver in Florida auto insurance. When litigation declines, insurers experience lower loss adjustment expenses, which can materially improve profitability. When those profits exceed regulatory thresholds, Florida law allows regulators to require insurers to return excess premium to consumers, rather than retain it.

This refund reflects past financial performance, not future rate guarantees.

Not Just Progressive: A Broader Regulatory Review

Progressive is not the only insurer under review. Florida regulators are evaluating other auto insurance companies for similar profitability trends, and additional state-required refunds or credits may be issued if excess profits are identified elsewhere in the market.

What This Refund Does — and Does Not — Mean

It’s important for consumers to understand:

• ✅ The refund is tied to past results, not future pricing

• ❌ It does not guarantee that auto insurance rates will decrease or remain unchanged

• ❌ It is not related to safe-driver programs or loyalty discounts

• ❌ It does not indicate an error in how premiums were originally calculated

Future insurance rates are still influenced by accident frequency, vehicle repair costs, medical expenses, inflation, and statewide claim trends.

A Note From Your Independent Insurance Agency

Wilcox Family Insurance is an independent insurance agency and is not affiliated with Progressive. This article summarizes publicly reported information to help consumers better understand how Florida insurance regulations work.

This content does not constitute legal advice, regulatory guidance, or insurance advice. Coverage, refunds, and eligibility vary by insurer and individual policy. Customers should refer to official communications from their insurance carrier for specific details regarding their policy.

If you have questions about how state regulations, refunds, or market trends may affect your auto insurance — or if you’d like a coverage review — working with a licensed independent insurance agent can help you better understand your options.