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If you're a USAA customer living in Florida, an upcoming customer refund might put extra cash in your pocket. USAA, which offers insurance, banking, advice, and retirement solutions to military families, announced that it plans to distribute almost $1 billion to eligible policyholders living in Florida.
Here's what to know about the distribution, why it's occurring, and whether you might qualify for a payment.
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How Florida's tort reform factors in
The $1 billion to be distributed is a combination of USAA savings and returns, and it's rooted in Florida's tort reform. Florida passed 2023 reforms that were designed to limit excessive litigation, including for insurance claims. The reforms had several effects, including shortening the statute of limitations to two years and ending one-way attorney fees.
Prior to the reform, Florida's one-way attorney fees meant that if a policyholder sued an insurer and won, the insurer was required to pay the policyholder's fees. However, the policyholder was not required to pay the insurer's attorney fees if the policyholder lost the case.
How tort reform reduced litigation
The tort reform had a notable effect on insurance litigation in Florida. According to Governor Ron DeSantis' office, "frivolous property claim litigation" declined by 25% in the first half of 2025 compared to the same time period in 2024. Overall, insurance litigation declined 23% from 2023 to 2024. Additionally, litigation continued to decline in every month of 2025 compared to the same month in the previous year.
Before the tort reform litigation passed, 76% of the country's homeowners insurance lawsuits originated in Florida, though the state's homeowners insurance policies only accounted for 9% of such policies in the country. After the reform was passed, those filings fell to 71.5% in 2023 and continued to decline in 2024.
How tort reform bolstered insurance profits
Reduced litigation led to lower costs for insurers, and policyholders are benefitting as the insurers face lower costs and start to pass those savings on. In October 2025, Governor Ron DeSantis announced that, thanks in part to the reform's effect in reducing litigation, Progressive would be refunding nearly $1 billion to Florida auto policyholders. The refunds reflected the insurer's reduced losses and enhanced savings related to Florida's tort and insurance reform.
"Florida's insurance market is stabilizing with decreasing auto and home insurance rates, and frivolous litigation is declining," said DeSantis. "This year, Florida's top five auto insurers are averaging over a 6% rate reduction, and we've secured nearly $1 billion in credits for Progressive auto policyholders – and the other carriers are expected to follow suit soon."
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How tort reform affected homeowners insurance
The reforms also bolstered homeowners insurance. According to DeSantis' office, since January 2024, 33 insurance companies filed for rate decreases in Florida. During the same time period, 46 companies requested no change or a 0% increase.
USAA's efforts to lower rates and support policyholders
USAA indicates that the Florida payments are part of a national effort to help military families manage the rising costs of insurance, and about half of policyholders should see a reduction in their 2026 car insurance premiums.
In Florida specifically, USAA states that it should provide nearly $1 billion to eligible policyholders. That includes $160 million in insurance dividend payments issued in December 2025. Additionally, the savings include two auto rate filings that reduced USAA car insurance rates by approximately 14%, as well as a $500 million dividend.
Who's eligible for USAA's payments
According to USAA, the $500 million dividend should go out to approximately 830,000 policyholders who had policies between 2023 and 2025. Eligible Florida policyholders should receive dividend payments beginning on June 15. Payments should average about $760, though more than 25% of members should receive more than $1,000.
Based on USAA's historical dividend process, members usually don't have to take any action to claim the dividends, and the credits are automatically applied to member accounts.
More states may follow
USAA's 2025 annual report indicates the insurer returned $3.8 billion to members in 2025, and Florida's tort reform serves as a model that other states are closely watching. While USAA and other mutual insurers return profits to members nationally when financial conditions allow, USAA's Florida return is directly linked to the state's legal reform. For policyholders to receive similar payouts in other states, those states may have to take similar legislative action, resulting in significant financial savings for insurers.
Bottom line
During a time when the cost for everything from gas to new car purchases is climbing, the idea that insurance rates might be coming down is a welcome reprieve. Florida has demonstrated the close link between legislation and insurance costs, and it's possible that other states might implement similar legislation.
Even if you won't be receiving a payment from USAA, it's a good idea to periodically shop around for car insurance to make sure you're still getting the best deal. You may also want to call your insurer to ask about any additional discounts you might qualify for, which could help you save money on car insurance.
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