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FLORIDA - Florida drivers with Progressive Insurance may receive refunds or account credits after the company allegedly exceeded the state’s legal profit limits for auto insurance over the past three years.
State law requires insurance companies that earn above the maximum allowable profit threshold to return the excess funds to policyholders.
NBC affiliate WBBH reported that Progressive is now preparing to issue refunds or credits to customers across the state.
Doug Nellans, an insurance expert at The Insurancenter in Fort Myers, told WBBH that the regulation is designed to protect consumers and ensure insurers do not earn excessive profits.
He added that the average Florida car insurance policy costs about $1,500 per year, meaning eligible policyholders could receive between $150 and $200.
Nellans noted that other insurance providers are encouraged and partially required to follow Progressive’s example.
Many companies are filing for rate decreases in response to the changing regulatory environment, which aims to provide financial relief to Florida drivers while maintaining a competitive market.
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WBBH reported that Progressive could begin issuing the checks or applying account credits in the coming months.
The move comes as Florida continues to monitor its auto insurance market to prevent overcharging and ensure compliance with state profit regulations.
The refunds could provide immediate financial relief to thousands of drivers who have been paying some of the highest auto insurance rates in the country.
The exact timing and amount of each refund will depend on individual policy terms and account status, but the distribution is expected to start in 2025.