It’s not every day an insurance company makes so much money it has to give some back. But that’s what’s happening in Florida. Progressive Insurance will refund nearly $1 billion to 2.7 million auto policyholders after earning more than state law allows.

For most drivers, that means a $300 rebate either as a check or a bill credit.

A rare case where the check really is in the mail

The refunds come after what industry insiders have called an “insurance crisis,” a national stretch of rising premiums and frustrated policyholders.

Across the U.S., auto and home insurance costs soared in recent years, driven by expensive collision repairs, pricier EV parts, global supply chain slowdowns, and more natural disasters hammering insurers’ bottom lines.

But Florida, long considered one of the toughest states for insurers, now sees some early signs of stabilization.

According to a press release from Governor Ron DeSantis’s office, Progressive’s refund reflects reduced losses and savings linked directly to the state’s tort and insurance reforms

Repairer Driven News explained that those changes, enacted in 2022 and 2023, targeted what officials called “excessive litigation,” especially over auto glass repairs.

DeSantis’s office reported that lawsuits over glass repairs fell from nearly 25,000 in mid-2023 to just over 2,600 a year later.

Progressive’s own financial filings show the company saw lower loss costs on certain auto accident claims and unusually strong profitability in the state

Even after two rate cuts in the past year, the company’s profits exceeded Florida’s statutory limits.

State law requires insurers to return what’s deemed “excessive profit.”

It’s a rule that’s about to pay off handsomely for millions of drivers.

DeSantis’s office said Progressive recorded a $950 million policyholder credit expense for profits earned between 2023 and 2025

Those credits will be distributed to active policyholders as of December 31, 2025.

The move follows an 8.1% rate reduction the company introduced earlier this year.

Florida’s insurance commissioner, Mike Yaworsky, recently announced that the state’s top five auto insurers are averaging a 6.5% rate decrease.

That’s a dramatic turnaround from 2023, when rates spiked by more than 30%. He explained that the overall personal auto liability loss ratio has dropped to 53.3%, meaning insurers are paying out less in claims relative to premiums collected.

The governor said several other insurers may soon hit similar profit thresholds, potentially triggering more refunds

After years of headlines about rising costs, at least some Progressive customers are seeing the pendulum swing the other way. Soon, there could be even more drivers getting a lucky letter in the mail.