Florida’s $1B auto “refunds” stem from the excess-profits law (§627.066)—not generosity.
Florida headlines say auto insurers are “giving back” nearly $1 billion. Here’s what that really means, and how recent tort changes affect crash victims.
Why the $1B “Refunds” Are Happening
It’s not generosity, it’s the law!
Florida’s Excess Profits statute says if an auto insurer earns above a legal profit threshold over a three-year period, the excess must be returned to policyholders as a refund or bill credit. See: Florida Statute § 627.066
- The Governor’s office highlighted that Progressive recorded about $950M toward Florida policyholder credits tied to the three-year period ending December 31, 2025, with credits expected for active policyholders as of that date (≈2.7M policies). Source: Governor’s Press Release
What counts as “excess profit”
In simple terms, “excess” is when underwriting gain over the last three calendar-accident years exceeds the anticipated profit + 5% of earned premium, triggering mandatory givebacks. See § 627.066 text
Are Auto Rates Dropping?
Some relief in 2025, after steep prior hikes
Florida’s top five auto insurers (≈78% of the market) indicated an average –6.5% rate change for 2025 (some up to ~–11.5%). That follows +31.7% in 2023 and +4.3% in 2024. Context matters. See regulator-reported figures and updates at Florida OIR
“Frivolous Lawsuits”? What Actually Changed for Crash Victims
Shorter deadline to sue
The statute of limitations for negligence (most auto-injury cases) is now 2 years (reduced from 4). Miss it, and your claim is barred. Effective March 24, 2023.
The 51% fault bar
Florida now uses modified comparative negligence. If you’re more than 50% at fault, you recover nothing (medical-malpractice cases are treated separately). Expect insurers to leverage this in negotiations. See § 768.81
Attorney fee & evidence rule shifts
2023 reforms (HB 837) also changed attorney fee exposure in suits against insurers and tightened rules on medical billing evidence, moves that reduce filings but can also make valid, moderate-value cases harder to bring.
What This Means If You’re Hurt in a Crash (Practical Steps)
Protect your claim early
Document fault: photos, video, 911 audio if available, and independent witnesses help guard against “you’re >50% at fault” arguments.
Mind the clock: two years goes fast, talk to our injury lawyer immediately after medical stabilization. See § 95.11(5)(a)
Don’t assume a small case isn’t worth it
With new rules, insurers may argue down value or fault-share. A focused demand package, clear liability, medical causation, and reasonable specials, can still resolve fairly.
Ask about UM/UIM and MedPay
Underinsured motorist coverage can be critical when the at-fault driver’s limits are low. Be sure to review your coverage at renewal time.
FAQs
Are Progressive’s credits proof tort reform “worked”?
They prove profits exceeded Florida’s legal cap, triggering refunds under the Excess Profits statute, not corporate goodwill.
When will Progressive policyholders see credits?
Progressive’s filing indicates credits are expected for active policyholders as of December 31, 2025, subject to final accounting for the 3-year period.
Are all carriers issuing refunds?
The excess profits law applies to any auto carrier that beats the statutory threshold. Some may owe givebacks; others may not. OIR monitors compliance. Oversight information is maintained by Florida OIR.
Are my auto rates actually going down?
Florida’s largest auto writers signaled an average –6.5% adjustment for 2025, but that follows very large increases. Your mileage will vary by carrier, location, and driving record. See updates at Florida OIR.
Do “fewer lawsuits” mean cases were frivolous?
Not necessarily. Access rules changed, a shorter deadline and the 51% bar deter many claims, including meritorious ones with disputed liability.
How long do I have to file an auto-injury lawsuit now?
Generally 2 years from the crash date for negligence claims (auto-injury). Don’t wait, investigation and medical documentation take time. See § 95.11(5)(a)
Our View (An Injury Attorney’s Perspective)
Florida’s refunds are a consumer protection working as designed when profits overshoot, not a sign that crash victims were filing “frivolous” cases. Meanwhile, real people face shorter deadlines and a stricter fault bar. If you’re injured, don’t wait on slogans, get legal counsel early and protect your rights under the new rules. See: 95.11 Limitations other than for the recovery of real property.
Need help after a crash?
Call, chat, or schedule a free consultation with Attorney Armando Edmiston and his legal team. We’ll evaluate fault, preserve evidence, and move fast to keep your claim within Florida’s 2-year window. Contact us today.