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FLORIDA - Florida drivers insured by Progressive Insurance are set to receive nearly $1 billion in rebates following recent state legislative reforms aimed at reducing litigation costs.
Governor Ron DeSantis announced the rebate plan during a press conference in Sarasota, noting that the state’s top five auto insurers have already reduced rates by an average of 6.5% in 2025. Some insurers are offering reductions of up to 11.5%.
The rebates from Progressive Insurance are expected to average around $300 per policyholder, though the exact amount will vary depending on the length of the policyholder’s coverage.
Rebates may be issued as direct checks or applied as credits to customer accounts.
Governor DeSantis emphasized that the decrease in rates and rebates is largely due to legislative reforms enacted between 2022 and 2023, which significantly lowered litigation expenses for insurance companies.
The Florida Office of Insurance Regulation, led by Commissioner Michael Yaworsky, is in discussions to extend similar rebate programs to other insurance companies, with a target date of January 1, 2026.
In a statement filed with the Securities and Exchange Commission, Progressive confirmed that the state’s insurance reforms have resulted in lower claim costs and favorable reserve management.
The reforms have also affected the homeowners insurance market.
Since January 2024, 33 companies have filed for rate reductions, while 46 requested no change in rates.
Peninsula Insurance, one of the largest providers, applied for an 8.4% reduction in homeowners premiums and a 12% decrease for condo owners.
As a result of these changes, more insurers are entering the Florida market, and policyholders are seeing immediate financial relief from reduced rates and rebates.