Potential Rebate for Auto-Insurance Policyholders in Florida: A Billion-Dollar Break for Drivers
By Marco Island Naples News Staff | October 23, 2025

Florida drivers could soon find a welcome surprise in their mailboxes — or on their next insurance bill — as Progressive Corporation prepares to return nearly $1 billion in rebates to policyholders across the Sunshine State.

Governor Ron DeSantis announced the move earlier this week in Sarasota, describing it as evidence that Florida’s once-volatile insurance market is finally stabilizing. “We promised reforms to make insurance fair and affordable again,” DeSantis said. “Now we’re seeing those promises turn into real savings for Floridians.”

According to state officials, the refunds stem from Florida’s long-standing “excess-profits law,” which requires insurers to return money to customers if their earnings exceed state-approved profit thresholds. For Progressive, that means sending an estimated $300 rebate per policyholder, either as a mailed check or a credit on upcoming bills.

“This is what accountability looks like,” said Florida Insurance Commissioner Michael Yaworsky, noting that auto insurance premiums have dropped an average of 6.5% statewide in 2025 — the first significant decline in years. “Florida’s insurance market is becoming more competitive, and consumers are finally seeing the benefits.”

The rebates come as part of a broader push to overhaul Florida’s insurance industry, which has faced years of skyrocketing premiums, fraud, and litigation costs. A series of legislative reforms aimed at reducing frivolous lawsuits and attracting new insurers appears to be paying off.

However, consumer advocates caution that not everyone should expect immediate relief. The rebate applies only to Progressive policyholders for now, though state regulators say other companies may follow if their profits exceed allowable limits.

“This is a positive development,” said Janet Alvarez, a Miami-based consumer analyst. “But it’s not a blanket refund for all drivers. It’s important for consumers to stay informed and verify with their insurance provider whether they qualify.”

For Florida’s 15 million registered drivers, the news offers a rare dose of optimism amid years of escalating costs. With insurance rates finally trending downward — and refunds starting to roll out — the relief could be more than just financial.

“This shows the system can work when properly managed,” DeSantis said. “We’re putting money back where it belongs — in the pockets of hardworking Floridians.”

What Drivers Should Know:

• 💰 Average rebate: ~$300 per Progressive policyholder

• 📅 Distribution: Mailed checks or bill credits over the coming months

• 📉 Market trend: 6.5% average auto rate decrease statewide in 2025

• 🚗 Applies to: Progressive policyholders in Florida; other insurers pending

• ⚖️ Law basis: Florida’s “excess profits” rule for insurers