Progressive Insurance is set to provide approximately $1 billion in rebate credits to its 2.7 million Florida customers in 2026, although the exact individual amounts are yet to be determined. Florida Governor Ron DeSantis announced the initiative during an appearance at the Westin Hotel in Sarasota, alongside Florida Insurance Commissioner Mike Yaworsky. He expressed hopes for similar agreements with other auto insurance companies.
Governor DeSantis indicated that the rebates would likely average around $300 per policyholder. Progressive spokesman Jeff Sibel confirmed in communication with the Herald-Tribune that customers can expect to see their accounts credited in 2026. The total amount of credit each policyholder will receive is correlated with their “earned premium” in 2025, which reflects the actual premium collected by Progressive.
In addressing the structure of the rebate, Sibel noted that if a policyholder has no remaining balance due or if their credit exceeds their following payment, the excess will be refunded through their usual payment method.
This announcement comes amid a backdrop of fluctuating auto insurance premiums in Florida. After experiencing significant hikes in previous years, both DeSantis and Yaworsky attribute recent legislative efforts aimed at reforming insurance litigation as a contributing factor to a slight decline in rates. The Florida Office of Insurance Regulation indicated in July that the five major auto insurance companies expect a 6.5% rate decrease in 2025, although this follows steep increases in the past—4.3% in 2024 and 31.7% in 2023.
Underlining the economic impact of legal reforms, DeSantis pointed out that while Florida represented only 8% of claims nationally, it accounted for a staggering 78% of litigation costs, burdens that ultimately affect policyholders. He highlighted that these reforms significantly reduced the incentive for lawyers to pursue expensive lawsuits, leading to a notable decrease in litigation.
With these changes, DeSantis remarked, “We’re seeing rates go down in the auto space at a pace we haven’t seen in decades,” emphasizing that the enormous savings are being redirected to the consumers rather than legal expenses.
This proactive approach towards enhancing affordability in auto insurance could restore a sense of financial relief for Floridians, bringing hope amidst a challenging insurance climate. With more potential collaborations on the horizon, the future may hold further positive changes for consumers in the state.