Refunds and Rate Decreases May Be on the Way for Some Florida Drivers | Insurify

Floridians pay some of the most expensive car insurance premiums in the U.S. But Progressive auto insurance customers may soon be able to get a refund.

State law requires insurers to issue refunds to policyholders — or offer a renewal credit — if their profits exceed a state-mandated threshold over a three-year period. Progressive's profits may pass that threshold in 2025, according to the company's recent Securities and Exchange Commission filing.

In its filing, Progressive noted that the insurer has lowered its Florida car insurance rates twice in the past year due to increased profits and lower claims costs.

"Despite these actions, it is possible that our profit for personal auto in Florida for the 2023 to 2025 period will exceed the statutory profit limit … and that we will need to pay any profit above [that limit]," the filing stated.

Florida drivers with Progressive auto insurance pay an average of $272 per month for full coverage and $181 for liability-only coverage, according to Insurify data. The state averages for all insurers are $209 and $155 per month, respectively.

Car insurance premiums fluctuate

In addition to the possible refund, Progressive has asked the Florida Office of Insurance Regulation (FLOIR) for permission to cut its car insurance rates by 8.6%.

Car insurance rates in Florida fell 10% since July 2024, according to a recent Insurify report. But Insurify data scientists predict Sunshine State rates will increase 7% by the end of the year, bringing the average annual premium for full-coverage to $3,107.

Many factors contribute to Florida's high car insurance rates. Its no-fault system, its high population density, the number of uninsured drivers, and the damage potential from extreme weather all affect rates.

Hurricanes not only affect home insurance premiums, but they can also increase car insurance rates. In 2024, Florida drivers submitted more than 100,000 claims following hurricanes Helene and Milton.

Despite this, the five top insurers in the state submitted rate decreases averaging 6.5%, according to Florida insurance regulators. The FLOIR points to insurance regulation reforms as driving the decreases.

What's next for Progressive policyholders?

Progressive hasn't explicitly confirmed the refunds will occur, when they will happen, or how much will be refunded. But NBC affiliate WBBH reported refunds could begin arriving in the next couple of months.

The requested rate decrease is currently pending approval with FLOIR. If approved, policyholders would likely see rate decreases in 2026 when their policies renew.

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