State Farm, one of Florida’s largest auto insurers, has filed for a 10% rate reduction for its drivers across the state. If approved by regulators, the new rates would take effect in early 2026, delivering savings to approximately two million policyholders.
The company stated that this filing reflects improving market conditions and continues a trend of returning value to customers. Since October 2024, State Farm has lowered its overall auto premiums by more than 20%, resulting in a total annual savings of over $1 billion for Florida drivers.
Company officials and state regulators attribute the rate decreases to recent legislative reforms aimed at curbing excessive litigation. “This is the direct result of Florida’s legislators and insurance regulators recognizing the impact of rising insurance costs — caused by over-litigation,” Allyson Watts, a senior vice president at State Farm, wrote in a recent op-ed. While crediting the reforms for creating a “healthier marketplace,” Watts noted that inflation and high repair costs remain significant challenges for the industry.
The Florida Office of Insurance Regulation (OIR) confirmed that State Farm’s filing is supported by strong underwriting gains and a statewide reduction in lawsuits. These trends follow the passage of House Bill 837, a 2023 tort reform law that limited attorney fees and shortened the time frame for filing legal claims.
This move by State Farm is part of a broader industry trend. According to the OIR, Florida’s five largest auto insurers have implemented an average rate decrease of 6.5% in 2025, reversing years of sharp increases. Other major carriers, including Progressive, have also announced rate cuts or refunds, signaling what regulators see as early signs of long-term stability in the market.
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