Why drivers could get refunds
Florida drivers who have Progressive Insurance and are insured could see refund checks or credits coming their way. Why? The company has made more than what the state law allows for automobile insurance companies.
Florida law provides that there are regulations to prevent insurance companies from overprofiting from their customers. If a company goes over the profit limits, it must return the excess to the policyholders. Progressive has gone over the limits for three years, and thus the refunds are now due.
How much money could drivers get back?
Doug Nellans, an insurance expert from The Insurancenter in Fort Myers, explained that the refunds could be significant. “The average car insurance policy is about $1,500 per year, so you’re talking about $150 to $200, which is a nice starting point to a path to relief,” he said.
That means Progressive drivers in Florida can expect to receive a few hundred dollars back. That might not wipe out the expense of insurance, which is high, but it could be a welcome bit of financial relief at a time when many families are grappling with increasing costs.
Customers weigh in
Long-standing customers, such as some, report that they are awaiting the refunds. Viviano Ruano, a Progressive customer of more than seven years, explained what occurred with her. Her monthly premium is nearly $190 a month now, following years of gradual hikes.
Ruano believes refunds would be helpful. I think the refunds they are trying to give to long-time customers are helpful. I think it would really help out,” she said.
Why does Florida have these laws?
The insurance business in Florida is tightly controlled by the government. The state legislation requires auto insurance providers to return surplus profits to policyholders if they surpass profit margins over three years. This is designed to prevent businesses from overcharging policyholders and to maintain insurance premiums on a level playing field.
Nellans continued that regulatory safeguards are in place to stop windfall profits and protect drivers. Progressive must now comply with these regulations and refund money to policyholders.
Could other insurers be next?
Nellans also suggested that other insurance firms will soon be following with refunds of their own. “Other insurers are encouraged and somewhat obligated to do so,” he stated. That means Progressive may not be the sole company sending checks back to Florida drivers.
Nevertheless, the regulations do not reach beyond auto insurance. Homeowners’ insurance is not subject to the same three-year benchmark. Home insurers, rather, get to keep excess profits for 10 years, making rebates less likely in that market.
Signs of relief in the market
Florida drivers have been facing high insurance premiums in recent years, especially for home and car coverage. But more positive changes could be coming. According to Nellans, “We are starting to see more and more carriers file for rate decreases.”
This could be a sign that some insurance providers are beginning to lower their rates, bringing more relief to consumers all over the state.
When refunds could happen
Progressive has not yet indicated when it will announce specific dates for issuing refunds, but experts say the payments or credits can begin in the next few months. Customers should watch for company announcements, either online via their Progressive accounts or through the mail.
Final takeaway
For Florida drivers, especially those who are struggling to cope with the rising cost of living, the possibility of refunds is welcome news. The refunds may not be large, but they could provide them with some extra financial elbow room.
With Progressive forced to act under Florida law—and the possibility of other insurers following—drivers can expect to see relief in their wallets before long. For loyal customers like Ruano, the refunds are more than money back; they’re a step toward fairness in the state’s insurance market.
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