Settlement sends $1B from Progressive to Florida drivers

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(The Center Square) – Florida drivers are getting dividends from reduced litigation costs as a result of the state’s tort reform efforts, Gov. Ron DeSantis said Wednesday.

The state has negotiated with Progressive Insurance Company to issue nearly $1 billion in refunds to auto policy customers because of lower litigation costs as a result of legislation reforms in 2022 and 2023, the governor said.

The refunds might be issued as checks or credit on policy bills and will vary based on how long customers have been insured by Progressive, DeSantis said. The refunds are on top of rate decreases by Progressive in Florida, DeSantis said.

The average refund will be about $300, the governor said. 

The state is in negotiations with other major insurance carriers for refunds as well, he added.

“We think a lot of this will be very similar,” DeSantis said of the other carriers. “We don’t think there will be a big difference amongst different carriers.”

The other companies will likely agree to refunds by January, the governor said.

The insurance landscape in Florida has changed dramatically since tort reform, DeSantis said.

“Florida was really considered a litigation hell hole,” the governor said. “It used to be you didn’t want to be in Florida. Part of it was demographics, part of it was bad driving but part of it was legal and litigation.”

There were cases with damage of $50,000 but attorney fees of $350,000, DeSantis said.

Tort reform has also helped attract more competition in the homeowner’s insurance market, the governor said.

“Seventeen new companies have entered the Florida homeowners’ market, 33 companies have filed for rate decreases, and reinsurance market rates have declined, DeSantis said.

As a result of tort reform, frivolous lawsuits against property insurance companies dropped 25% in the first half of 2025 compared to the same period in 2024, according to the governor’s office.

“Every month of 2025 has reported a continued decline in litigation compared to the same month the previous year, further proof that the state’s legal environment has stabilized and is discouraging abusive lawsuits,” DeSantis said in a release.