February 6, 2026
Wilcox Family Insurance Company
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.
If you would like to speak with our agency on getting insurance quotes or reviewing and comparing your current coverage, please feel free to:
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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.
Is any other Insurance involved in this matter??
Such as State Farm Insurance??
Hey Julia,
Great question.
At this time, the refunds being issued are specific to Progressive and are based on their individual financial results in Florida. Each insurance company is reviewed separately by state regulators, so whether another company like State Farm would issue refunds depends entirely on their own profitability and regulatory review.
It’s certainly possible that other insurers could be evaluated for similar situations, but as of now, there hasn’t been any public announcement regarding State Farm issuing refunds in the same way.
Also, it’s important to note that these situations typically aren’t the result of companies intentionally overcharging. Instead, they usually stem from actual results (such as claims and expenses) coming in better than expected compared to what was originally built into their rates.
Since we are an independent agency and do not represent State Farm, I’m not able to speak to their specific position or financials.
If you have any other questions or would like us to review your current coverage and pricing options, I’d be happy to help.
Thank you,
Mark Wilcox
Wilcox Family Insurance
I wonder if this review process applies to homeowner’s insurance too? Especially in Central Florida where rates have skyrocketed, more than doubled, despite not being in high risk flood/hurricane zones. Hopefully, they factor in CEO compensation to the profits.
We got our credit from Progressive (auto). At first, I was confused why we didn’t have our automatic payment due until April, then saw the credit took care of it for a few months.
Great question! I completely understand the frustration, especially on the homeowners side.
In theory, similar regulatory review concepts can apply to homeowners insurance as well. However, in Florida, the situation is very different compared to auto insurance. Homeowners carriers have faced significantly higher claim costs, reinsurance expenses, and past litigation issues which is a big reason why rates have increased so much in recent years, even in areas that may not feel “high risk.”
Because of those factors, most homeowners insurers have not experienced the same level of excess profitability that would trigger refunds like what we’re seeing with Progressive on the auto side.
That said, regulators do review all lines of insurance, and if a company were to become overly profitable in homeowners, similar actions could be taken, it’s just much less common given the current market conditions in Florida.
I’m glad to hear you received the Progressive credit a lot of people had the same initial confusion when their payment disappeared for a bit. Definitely a nice surprise once you realize what it is.
If you ever want a second look at your homeowners policy or rates, I’d be happy to help review options. There can still be opportunities to save depending on the situation.
Thank you,
Mark Wilcox
Wilcox Family Insurance
Does the refund apply if you had a previous policy 2019 – 2023?
Based on the information that has been publicly shared so far, eligibility for the Progressive refund is generally tied to having an active Progressive auto policy in Florida as of December 31, 2025. The exact refund amount can vary depending on factors such as how long the policy was active and the premiums paid during the review period.
If someone previously had a Progressive policy between 2019 and 2023 but did not have an active policy at the end of 2025, they may not qualify for the refund. However, Progressive would be the best source to confirm individual eligibility since they have access to the specific policy details. It may be worth a phone call to Progressive directly as they are the ones will be able to determine eligibility.
For customers who do qualify, the refund is typically issued as a bill credit or refund check, depending on how the policy was paid.
Hope that helps clarify things!