Governor’s Political Theater Cannot Hide that a Mandatory Rebate Only Proves Florida’s Insurers Gouged Consumers Under His Watch
WASHINGTON, D.C. – Despite Floridians paying the nation’s highest property and casualty insurance rates in the nation, Governor Ron DeSantis is trying to score political points on auto insurance rebates after the state’s 2012 excessive profits law kicked in. DeSantis announced that one of the largest auto insurers will be returning nearly one billion dollars to state consumers by 2026 and modestly lower rates. While DeSantis’ self-congratulatory press release may read like a victory, the refund actually highlights the excessive premiums, failed reforms, lack of accountability, and broken state of Florida’s property and casualty insurance sector under DeSantis and the Republican-controlled state legislature.
“Floridians deserve more than getting their own money returned after years of overcharges by insurance companies. Governor DeSantis is trying to score political points when he’s largely responsible for this crisis and is still refusing to make reforms. Insurance policyholders in Florida deserve a Governor willing to confront the property insurance crisis head-on, hold insurance companies accountable, and put Floridians’ interests ahead of industry profits,” said Kyle Herrig, Unlocking America’s Future spokesperson.
Progressive, one of the state’s largest auto insurers, is on the hook for the one-billion-dollar refund. The insurer specifically cited the DeSantis administration’s and Republican-controlled legislature’s failed legal reform efforts, which made it harder for people to litigate over claim denials and underpayments, as a prime driver for the excessive profits. In reality, homeowners across the state continue to face a devastating property insurance crisis characterized by skyrocketing premiums, widespread claim denials, and non-renewals, all while insurance companies post massive profits. Meanwhile, Governor DeSantis is refusing to support any legislative efforts to protect policyholders from the insurance sector’s legal system abuse.
Despite DeSantis’s recent claims that insurance reform has provided “relief” to Florida residents, the reality paints a starkly different picture. Home insurance premiums in Florida have surged by an effective rate of 54% since 2019, according to S&P Global. The state now has both the highest average and highest median home insurance premiums in the entire country.
While DeSantis continues to try to promote his 2023 legal reforms, the devastating impact of these reforms is evident in recent data. A report from independent ratings agency Weiss Ratings revealed that 14 Florida property insurers closed more than 50% of claims filed by homeowners in 2024 without paying a single penny to cover damages. Nine additional insurers closed between 40% and 50% of claims with no payment whatsoever.
