Some Florida Residents Will Be Getting An Auto Insurance Refund - Here's What We Know So Far

Florida has plenty to offer visitors — beautiful beaches, weather, and even Disney World. Life in the Sunshine State for residents, however, isn't always a day at the beach. Locals grapple with hurricanes that can damage property and vehicles, and home and auto insurance rates that have spiraled out of control in recent years. The state boasts some of the highest insurance rates in the country, due in part to its severe weather. Hurricane Milton alone cost the state $34.3 billion in damages. Florida also has what's called a no-fault insurance law, which requires drivers to have personal injury protection, which increases premiums. If drivers are involved in an accident, everyone involved must file a claim, no matter who's at fault.

Additionally, more lawsuits are filed against insurers in Florida than anywhere else in the U.S. The high cost of litigation is passed on to policyholders. The increase in lawsuits has prompted many reinsurers to leave the state. Reinsurers provide insurance to insurance companies, and the state had several small insurers who relied on these companies. The result is more risk, which equates to higher premiums.

By 2023, more than 12 insurance companies, some big and some small, had exited the state. There's good news for residents, however. The insurance market in the state has stabilized, thanks to legislative changes, new insurers, and rate decreases. As of October 2025, there was more reason to celebrate. Governor Ron DeSantis announced that Progressive will refund almost $1 billion to Florida auto policyholders — though not everyone is eligible.

The announcement from the office of Governor DeSantis details $950 million in policyholder credits, which represent the estimated profits over a three-year period ending December 31, 2025. Florida state law requires that insurance companies return excessive profit to policyholders. The average refund is expected to be about $300. The governor's office also disclosed that in 2025, the top five auto insurance companies in the state have seen a 6.5% decrease in rates, an improvement over the 4.3% increase in 2024 and an astounding improvement over the 31.7% increase in 2023.

Of course, there's always a "but" in cases like these. Following the announcement, Progressive clarified to the South Florida Sun Sentinel that the refund will be in the form of an account credit, and only customers with active policies as of December 31, 2025, will receive the credit. Previous Progressive customers from 2023 and 2024 that switched to another company will not see a refund.

Other issues are driving up rates in Florida. In addition to weather and policy, the state also grapples with a high rate of uninsured drivers, crowded roads (it has the third-highest population of any state), and an influx of tourists that contribute to a high rate of accidents. While it may be tempting to explore cheap insurance, the tide is turning. Litigation is falling drastically, and more insurance companies are entering the market, helping to drive down rates.