What is the Florida Insurance Reform Refund?

I got a surprise on my credit card bill this month, in the form of a $318 Florida Insurance Reform refund from Progressive Insurance. Read on to learn what this is, and whether you might be getting a refund as well!

If you have Progressive, log into your account, and check your policy activity or history. The credit will say:

Payment Credit – Florida Insurance Reform
Postmark/sent date

Mine looks like this:

Florida’s Rising Insurance Rates

If you live in Florida, you have probably felt the impact of rising insurance premiums over the past few years. Between hurricanes, insurer bankruptcies, and a wave of lawsuits tied to claims, the state’s insurance market has been under intense pressure.

In response, lawmakers passed a series of measures commonly referred to as Florida insurance reform. Here’s what that actually means, what the changes are designed to do, who they affect, and how rebates factor into the picture.

What Is Florida Insurance Reform?

Florida insurance reform refers to legislation passed in 2022 and 2023 aimed at stabilizing the property and auto insurance markets. The reforms focus primarily on homeowners insurance but also include provisions that affect auto insurance policyholders.

The state’s goal was to address two major problems: insurers leaving Florida or going insolvent, and rapidly increasing premiums for consumers. Lawmakers argued that excessive litigation, fraudulent claims practices, and mounting storm losses were driving up costs and shrinking the number of companies willing to operate in the state.

We have had to get new homeowner’s insurance almost every year due to companies deciding not to work with Florida! And every year, the cost has gone up as well.

What the Reform Changes

One of the biggest shifts involves litigation rules. Florida previously had legal provisions that allowed plaintiffs’ attorneys to recover fees from insurers in certain cases. The reform eliminated or restricted some of those fee structures and limited the use of assignment of benefits agreements. The intention was to reduce lawsuits tied to property damage claims, particularly roof claims.

The reforms also aim to strengthen Citizens Property Insurance Corporation, the state-backed insurer of last resort, while encouraging private insurers to re-enter the market. By creating a more predictable legal environment, lawmakers hope to attract more carriers, increase competition, and gradually ease premium pressure.

In the auto insurance space, Florida law includes a mechanism that caps insurer profits over a rolling multi-year period. If a company exceeds that profit threshold, it must return excess funds to policyholders. This has led to high-profile refund announcements in recent years.

Who Is Affected

Homeowners are among the most directly impacted. Changes to claim procedures, lawsuit rules, and roof coverage standards all influence how property damage claims are handled. Some policyholders may find it harder to pursue litigation, while others may see more insurers entering the market over time.

Auto insurance customers are also affected. While Florida did not overhaul its no-fault system in these reforms, regulatory provisions regarding profit caps and rate oversight remain in place. That is where rebates come into play.

Insurance companies themselves are significantly affected. Carriers must adjust to the new legal framework, updated underwriting standards, and stricter profitability oversight. Attorneys who specialize in insurance litigation are also impacted by the changes in fee recovery rules.

Who Gets Rebates

Rebates are most commonly associated with auto insurance under Florida’s excess profit statute. If an insurer’s profit margin exceeds the state’s allowable threshold over a defined period, the company is required to return the excess to policyholders.

Eligible recipients are typically customers who had active policies during the relevant timeframe. Refunds may be issued as direct checks or applied as credits to future premiums. The exact qualification criteria depend on the insurer and the regulatory determination for that period.

Our policy was paid in full, so we got a refund. If you make policy payments, you may see a reduction in your bill, rather than a refund.

We got no email or paper mail saying we were getting a refund! I wouldn’t have even known about it if I hadn’t noticed the credit from Progressive on our credit card statement and looked it up.

According to a Reddit post I read, some people (like me) have already received their rebates, while others are still waiting. So, they are still rolling these out, and not everybody has gotten theirs yet.

For homeowners, the financial impact is more likely to appear in the form of discounts or rate adjustments rather than cash rebates. For example, mitigation credits for hurricane-resistant features can reduce premiums at renewal.

What It Means for Florida Residents

Florida insurance reform is designed to create long-term market stability rather than immediate dramatic savings. Some homeowners may not see instant premium drops, especially in high-risk coastal areas. However, the state reports that more insurers have entered or expanded in Florida since the reforms were passed.

Whether the reforms ultimately lower costs across the board will depend on storm activity, market competition, and how effectively litigation levels decline over time. For now, the changes reshape how claims are handled, how insurers operate, and how profits are regulated.

If you are a Florida policyholder, it is worth reviewing your policy, understanding any mitigation discounts you qualify for, and paying attention to announcements from your insurer regarding potential credits or refunds.

The reform affects nearly every participant in the state’s insurance ecosystem, and its impact will continue unfolding in the years ahead.