Progressive Insurance is set to pay out refunds or account credits of around $150 to $200 to eligible drivers, particularly in Florida, after the company allegedly made profits above the state's legal limits on auto insurance over the last three years. This payout is part of a regulatory requirement that insurers return excess profits to policyholders to prevent overcharging.

Progressive could begin issuing checks or applying account credits within the next few months. This move comes as part of a broader trend of insurers filing for rate decreases in Florida, giving drivers some financial relief as auto insurance costs climb.

This move offers some financial relief to drivers facing rising car insurance costs. Eligibility is likely tied to being a Progressive policyholder in states with such profit limit regulations, such as Florida, where this situation is current.

Other insurers may follow Progressive's lead with similar refunds or rate decreases in response to regulatory changes aimed at protecting consumers from excessive premiums.

Who is eligible?

Eligible Progressive policyholders for refunds are those who had an active auto insurance policy with Progressive in Florida during the past three years when the company exceeded the state's legal profit limits for auto insurance. The state law requires insurers to return profits above the allowable threshold to policyholders.

This means both current and former Progressive policyholders in Florida who paid premiums during this period may receive pro-rated refunds or account credits, with typical amounts estimated between $150 and $200.

Eligibility depends on having paid premiums while Progressive made excessive underwriting gains under Florida regulations. The exact refund amount and timing depend on individual policy terms and account status, but the refunds are expected to start being issued in 2025.

How and when will Progressive notify affected customers

Progressive will notify affected customers who are eligible for the refunds through direct communication, likely via mail or email. The notifications are expected to be sent out in the next few months of 2025, as Progressive begins issuing refund checks or account credits to eligible Florida policyholders.

These communications will inform policyholders about the refund amounts, eligibility details, and how the refunds will be issued. The timing aligns with regulatory requirements and Progressive's internal processing to ensure accurate distribution.

Customers should watch for official notifications from Progressive as the refund process proceeds in 2025.

How do Florida excess-profit refunds get calculated

Florida calculates excess-profit refunds for auto insurers like Progressive based on a specific formula set by state law (Florida Statutes 627.066). The key points of the calculation are:

• Excessive profit occurs if an insurer's underwriting gain over the most recent 3 calendar-accident years combined exceeds the sum of the anticipated underwriting profit plus 5% of earned premiums for those years.
• Underwriting gain is calculated by subtracting incurred losses and loss adjustment expenses (developed to an ultimate basis as of March 31 after the accident year), administrative and selling expenses, and policyholder dividends from earned premiums for each calendar year.
• The anticipated underwriting profit is based on the profit and contingency percentage factors filed by the insurer for each period, adjusted for investment income associated with Florida business.
• If excessive profit is found, the insurer must refund the excess amount on a pro-rata basis relative to earned premiums to all voluntary private passenger auto policyholders of record as of December 31 of the final year in the period.
• Refunds may be issued as cash payments or credits against future policy premiums, and must be completed within certain time frames defined by the regulation.

Why are insurance companies giving money back?

Florida’s regulatory system ensures insurers don’t make excessive profits. If companies earn more than allowed, they must either reduce future rates or return the excess to policyholders. Progressive’s refunds are part of this process. Other insurance providers may also need to follow suit if they exceed the profit threshold. Experts see this as a step toward fairer insurance pricing in the state and relief for drivers dealing with rising premiums.

The system is part of broader consumer protection laws designed to balance corporate earnings with public interest. By capping allowable profits, Florida aims to keep insurance accessible, prevent price gouging, and promote market fairness for all drivers.

This process also signals to insurers that regulatory oversight is active and effective. Companies exceeding profit limits are held accountable, which encourages them to maintain reasonable pricing strategies and consider rate reductions proactively rather than waiting for mandates.

Policyholders should keep an eye on their emails and account notifications from Progressive for exact timing and instructions. The company will provide detailed information about how much each driver is receiving and whether it will be applied directly to their policy or sent as a check.

For many Floridians, this refund comes at a time when auto insurance premiums have steadily increased. While it may not cover all costs, the $150–$200 payout provides meaningful financial support, especially for those juggling multiple household expenses.