Good News for Florida Drivers
Floridians have seen some serious rises in insurance over the last few years. The average annual premium increased 132% for Florida drivers in the last decade.
What to Know About Florida Car Insurance Refunds
Why Some Drivers Are Getting Money Back and How to Know If You Qualify
Reviewed By Beth Swanson
Susan is a licensed insurance agent and has worked as a writer and editor for over 10 years across a number of industries. She has worked at The Zebr…
Credentials
- Licensed Insurance Agent — Property and Casualty
Beth joined The Zebra in 2022 as an Associate Content Strategist. A licensed insurance agent, she specializes in creating clear, accessible content t…
Credentials
- Licensed Insurance Agent — Property and Casualty
- Associate in Insurance (AINS)
- Professional Risk Consultant (PRC)
- Associate in Insurance Services (AIS)
Source: The Zebra
But millions of Florida drivers may receive money back on their auto insurance in 2026 thanks to a fairly rare situation in the insurance industry: insurers made more profit than state law allows. As a result, one of the state’s largest auto insurers is returning nearly $1 billion to policyholders in the form of refunds or bill credits.
If you live in Florida and carry auto insurance, here’s what you need to know about why the refunds are happening, who qualifies and how to receive your money.
Why Floridians Are Getting Car Insurance Refunds
- Lower litigation costs after recent insurance reform in Florida
- Declining claims and legal expenses
- Improved market conditions for insurers in the state
When these cost reductions led to higher-than-expected profits, regulators required insurers to give some of that money back to customers.
Why Floridians Are Getting Car Insurance Refunds
Florida has a consumer protection rule known as the “excess profits law.” Under this law, auto insurers cannot keep profits that exceed a certain threshold over a three-year period. If they earn too much, the extra money must be returned to policyholders.[1]
Recently, Progressive Insurance reported profits that exceeded the state’s allowed limit. Because of this, the company must return about $1 billion in excess premiums to Florida drivers.[2]
Several factors helped increase insurer profits, including:
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![Gavel]()
Lower litigation costs after recent insurance reform in Florida -
![Icon-Accident]()
Declining claims and legal expenses -
![icon-road-toll]()
Improved market conditions for insurers in the state
When these cost reductions led to higher-than-expected profits, regulators required insurers to give some of that money back to customers.
How Much Money Drivers Could Receive
The amount of the refund varies by policyholder, but according to the Miami Herald, the average amount is $300 per refund.
The exact refund depends on several factors, including:
- How long you had the policy
- The total premiums you paid
- Your policy type and coverage details
- Whether the refund is calculated per vehicle
Some drivers may receive more or less depending on their policy.
Do You Qualify for a Florida Insurance Refund?
Eligibility requirements depend on the insurance company issuing the refund. For the current round of refunds, most eligible drivers are:
- Progressive auto insurance customers
- Drivers with an active Florida policy as of December 31, 2025
- Customers who maintained coverage with the insurer during the qualifying period
Drivers who previously had the insurer but switched companies before the qualifying date may not receive the refund, even if they had coverage earlier in the three-year period.
Other insurers could also issue refunds if their profits exceed the state threshold in future filings.
How to Know If You’re Getting a Refund
Most drivers don’t need to apply or submit a claim. Insurance companies typically automatically notify eligible policyholders.
You may know you qualify if you receive:
- An email or letter from your insurer
- A refund check in the mail
- A credit applied to your insurance bill
Drivers who pay their policy in full are more likely to receive a check rather than a bill credit.
Insurers began notifying eligible customers in early 2026, and payments are expected to be distributed shortly afterward.
If you’re unsure, you can also log into your insurer’s customer portal or contact their customer service team.
Wrapping Up
Florida has historically had some of the highest car insurance rates in the country, so this refund offers welcome relief for many drivers.
However, it’s important to remember that these refunds don’t necessarily mean insurance costs will stay low. They simply indicate that insurers exceeded the profit limits set by state regulators during the past few years.
If insurers continue to generate excess profits, additional refunds could be required in the future.
Sources
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Florida Statutes. [Online Sunshine]
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Governor Ron DeSantis Announces $1 Billion in Auto Insurance Refunds as a Result of Florida’s Improving Insurance Market. [Office of the Governor Ron DeSantis]
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Some are getting refunds on their Florida car insurance. How can you get one? [Miami Herald]
