Governor Ron DeSantis announces that Florida drivers will receive over one billion dollars in auto insurance refunds as the market improves

Sarasota, Florida – Governor Ron DeSantis, joined by Florida Insurance Commissioner Michael Yaworsky, announced today a major milestone for the state’s insurance market, revealing that auto policyholders in Florida will collectively receive nearly $1 billion in refunds from Progressive Insurance. This unprecedented announcement comes as a result of continued improvements in the state’s insurance industry, driven by historic legislative reforms, declining litigation, and strong market competition.

“Florida’s insurance market is stabilizing with decreasing auto and home insurance rates, and frivolous litigation is declining,” Governor DeSantis said during a press event in Sarasota. “This year, Florida’s top five auto insurers are averaging over a 6% rate reduction, and we’ve secured nearly $1 billion in credits for Progressive auto policyholders – and the other carriers are expected to follow suit soon. Also, 17 new companies have entered the homeowners’ market, 33 companies have filed for rate decreases, and reinsurance market rates have declined.”

The governor emphasized that these refunds are a direct reflection of Florida’s tort and insurance reforms, which have curtailed frivolous claims, stabilized the market, and improved profitability for insurers while benefiting consumers. “Florida’s insurance market continues to see great stability and the strong underwriting gains in the auto market is just the latest sign of success since Florida’s historic tort reforms,” added Commissioner Yaworsky. “OIR has been diligent in communication with auto insurance companies to proactively ensure credits owed to policyholders are paid, and millions of consumers will start feeling the benefits with many companies in the process of issuing refunds. Companies must act in the best financial interest of Florida consumers—please know that OIR is fully aware of the books, and we are watching. So do the right thing, come to us first before we make you comply with the law.”

The announcement of Progressive’s nearly $1 billion in credits reflects savings for approximately 2.7 million Florida auto policyholders, marking a significant achievement in the state’s efforts to make insurance more affordable. Progressive credited the reforms for improving profitability and reducing losses, noting that lower loss costs on certain personal auto claims and favorable reserve development allowed the company to return excess profits to customers.

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“Florida’s historic insurance reforms laid the groundwork necessary for our insurance market to strengthen. Auto insurance rates have dropped so much that policyholders are now starting to receive refunds from their insurance company,” said Chief Financial Officer Blaise Ingoglia. “It’s a good day when the insurance companies are the ones sending the checks to the policyholders instead of receiving checks from policyholders. I have said since day one that I will fight for the policyholders, not insurance companies or trial attorneys. Thank you Governor DeSantis and the legislature for continuing to make our insurance market better for Floridians.”

The auto insurance market has seen remarkable stabilization over the past few years. Florida’s top five auto insurance groups, which account for 78% of the state’s market, are projecting an average -6.5% rate change for 2025, a stark contrast to the +31.7% increase in 2023 and +4.3% increase in 2024. This trend demonstrates a consistent decline in premiums for drivers, reflecting a healthier and more competitive insurance market.

In addition to auto insurance improvements, Florida’s homeowners market has experienced a significant transformation. Since the reforms were enacted, 17 new insurance companies have entered the market, bringing more than $574 million in policyholder surplus, while the total number of residential insurance policies has grown to over 7.61 million statewide. Domestic insurers reported a combined $954 million in net income in 2024, a major turnaround from a $741 million loss in 2022.

The Office of Insurance Regulation (OIR) has approved more than 150 residential filings for rate decreases or zero percent increases since the reforms, with 33 companies filing for reductions and 46 requesting no change in 2024 alone. Florida Peninsula Insurance Company, one of the state’s largest insurers, implemented its largest rate reduction in company history, cutting rates by -8.4% statewide and -12% for condominium owners. Overall, the 30-day average for homeowner rate filings is now -1.3%, compared to -0.1% one year ago, while the 180-day average shows -0.1%, down from +7.6% in the previous year.

Reinsurance costs, a significant factor affecting homeowners premiums, have also declined, with risk-adjusted costs dropping 1.56% in 2024 and another 0.36% in 2025, reflecting growing confidence in Florida’s property insurance market. According to S&P Global, the Insurance Information Institute, and Lending Tree, Florida had the lowest average homeowners rate increase in the nation in 2024, with just a 1% increase, while 33 other states reported double-digit hikes.

The success of these reforms extends beyond premiums. Florida has seen a dramatic reduction in insurance litigation, particularly related to property claims. Frivolous lawsuits have dropped 25% in the first half of 2025 compared to the same period in 2024, while overall insurance litigation filings fell 23% year-over-year from 2023 to 2024, remaining below pre-2018 levels. These improvements have encouraged private insurers to take on more risk, reducing dependence on Citizens Property Insurance Corporation, the state-backed insurer of last resort. Citizens’ exposure has decreased by more than $304.5 billion, with 477,821 policies moving to private carriers in 2024 and another 216,799 policies transitioning in 2025.

Governor DeSantis also announced the continuation of the My Safe Florida Home program for 2026, which helps homeowners protect their properties from weather-related damage and lowers insurance premiums. The program, reinstated in 2022, has completed over 122,000 inspections, approved 63,000 home hardening applications, and finished 42,000 projects. More than 62,000 homeowners have received grants totaling $383 million, resulting in an average premium reduction of $900 last year.

The governor emphasized that the state’s historic reforms have created a virtuous cycle: lower litigation and risk, increased market participation, declining premiums, and now direct refunds to policyholders. These improvements are part of a broader effort to make Florida insurance markets sustainable, competitive, and consumer-friendly.

“This year marks an unprecedented moment for Florida policyholders,” Governor DeSantis said. “We have seen tangible results from reforms in both the homeowners and auto markets. Floridians are starting to get the benefits directly in their wallets, and this is just the beginning. We will continue to make Florida the most fair and competitive insurance market in the nation.”

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The announcement has been met with optimism from consumers and industry observers alike. Policyholders receiving refunds from Progressive will see the impact of the reforms firsthand, while other insurers are expected to follow suit, further amplifying the savings for millions of Floridians.

The success of Florida’s reforms demonstrates the importance of coordinated legislative action, regulatory oversight, and a commitment to reducing unnecessary litigation. By improving market conditions, attracting new insurers, and ensuring competitive rates, Florida is creating a model for insurance stability that balances the needs of policyholders and the financial health of insurers.

In the auto insurance sector, statutory obligations under Section 627.066, Florida Statutes, prohibit insurers from retaining excess profits. OIR actively monitors insurer financials to ensure compliance, ensuring that any surplus is returned to policyholders in a timely manner. The nearly $1 billion in refunds from Progressive exemplifies this principle in action, highlighting the tangible benefits of regulatory vigilance and market reform.

As Florida’s insurance market continues to evolve, the combined effect of tort reform, regulatory oversight, market entry, and consumer-focused programs like My Safe Florida Home signals a long-term trend toward affordability, stability, and transparency. Policyholders, homeowners, and businesses alike are expected to see continued benefits as insurers adjust rates, pay refunds, and offer more competitive coverage options.

Governor DeSantis concluded, “These reforms have shown that when government works effectively, it can stabilize markets, reduce costs, and deliver real results for the people. Floridians are now seeing checks in their hands instead of higher bills, and this is proof that smart policy and oversight work.”

With ongoing improvements in auto and property insurance markets, coupled with innovative programs and strong oversight from the Office of Insurance Regulation, Florida is poised to maintain its position as a national leader in insurance market reform, protecting consumers while fostering a healthy, competitive industry.

The nearly $1 billion in auto refunds is a historic milestone, providing relief to millions of Florida drivers and signaling a broader era of reform and stability that could serve as a blueprint for other states struggling with rising insurance costs and litigation-driven markets.