Progressive Auto Insurance to Return $1 Billion to Florida Policyholders After Litigation Reform
Progressive Auto Insurance customers in Florida could soon see a pleasant surprise in the form of a rebate check or a credit on their next bill. Governor Ron DeSantis has announced that Progressive Auto Insurance will be returning nearly $1 billion to its policyholders, attributing the move to the tort reform law passed in 2023 aimed at reducing frivolous litigation in the state.
Governor DeSantis’ Announcement in Sarasota
Speaking in Sarasota, Governor DeSantis expressed optimism about the development, highlighting that these refunds are a direct result of Florida’s litigation reform efforts.
“We’re so used to going to the grocery store and getting sticker shock. To actually get money back – that’s a really, really good thing,” DeSantis said, noting that reforms have restored balance to the state’s insurance sector.
Florida has long been known for its challenging insurance market due to an older population, high traffic density, and a history of legal disputes. The Tort Reform Act of 2023 was signed into law to curb excessive lawsuits and reduce costs for insurers, paving the way for this rebate.
Why the Rebate is Happening
Governor DeSantis pointed out that, in the past, lawsuits over small claims often resulted in massive payouts to lawyers—sometimes ten times more than the actual dispute value. For example, a $50,000 dispute could end up with legal fees exceeding $300,000.
The 2023 reform law curbed these practices, creating a fairer system while still preserving the consumer’s right to litigate against insurers.
Florida Insurance Commissioner Michael Yaworsky added:
“It didn’t eliminate the option for consumers to litigate against their insurer. It restored rationality to that space in the same manner that exists in 49 other states.”
What Policyholders Can Expect
Progressive customers should expect either a rebate check in the mail or a credit applied directly to their upcoming bill. While the exact distribution timeline hasn’t been confirmed, policyholders are projected to benefit soon from the billion-dollar giveback.
Additionally, Commissioner Yaworsky confirmed that talks are ongoing with other insurance companies, meaning more refunds could be on the horizon for Floridians.
Florida’s Broader Insurance Market
The governor also shared updates on the state’s home insurance market, which has been under strain for years. According to DeSantis, 33 companies filed for a rate decrease last year, while 46 requested no change in their rates—a positive sign of stabilization in Florida’s historically volatile insurance sector.
Conclusion
The billion-dollar rebate from Progressive marks a turning point for Florida’s auto insurance landscape, showing how legislative reform can directly benefit policyholders. With additional insurers potentially joining the initiative, Floridians may see broader relief in their insurance costs over the coming months.
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