State Farm announces major 10% auto insurance rate drop in Florida, promising $400 average savings per vehicle

State Farm Insurance has announced a significant rate reduction for its auto insurance policyholders in Florida, bringing some long-awaited relief to drivers across the state. State Farm’s auto premiums will fall by an average of 10% - if approved - resulting in about $400 in annual savings per vehicle.

The move comes as part of a broader effort to stabilize Florida’s insurance market, which has long been plagued by high costs and litigation expenses. According to filings with the Florida Office of Insurance Regulation, the latest cuts add up to a total of $1 billion in savings when combined with previous reductions over the last two years.

State Farm’s new rate cuts announced

State Farm remains one of the biggest names in the US insurance landscape - and Florida is no exception. The company currently covers around 2.5 million vehicles in the state, ranking third behind Progressive and Geico, according to Fox 13.

While Progressive’s recent $1 billion rebate was announced publicly alongside state officials and Governor Ron DeSantis, State Farm’s rate reduction was introduced quietly through regulatory filings in late October.

State Farm insurance rates today

The company clarified that the new pricing adjustments were not tied to profit limit requirements but rather reflected market stabilization and reduced litigation costs.

State Farm attributed its decision - lowering auto insurance rates by 10% - largely to tort reform laws passed in late 2022, which have curbed lawsuits filed against insurers. The changes removed automatic legal fee recoveries in claim disputes, reducing attorneys’ incentive to litigate and, ultimately, lowering operating costs for insurance companies.

Why insurance costs are finally dropping

In a written statement, State Farm said it agreed with the governor and state insurance regulators that “the market is stabilizing” and that “reduced litigation has contributed to our opportunity to offer lower rates.” The company added that it aims to “build on this momentum and continue working toward further improvements in the marketplace.”

Florida’s insurance market - once one of the costliest and most volatile in the nation - has begun showing signs of recovery. Citizens Property Insurance Corp., the state-backed insurer of last resort, has reduced its policy count by nearly 60% since 2023 as private insurers re-enter the market, as per The Palm Beach Post.

Meanwhile, Florida’s top five auto insurers, which make up nearly 80% of the market, are expected to lower their rates by an average of 6.5% in 2025 - a shift many hope will mark the start of a more sustainable phase for drivers statewide.

FAQs

How much will State Farm customers save in Florida?

Policyholders are expected to save an average of $400 per vehicle under the new 10% rate cut.

Why is State Farm lowering its auto insurance rates?

The insurer cited reduced litigation costs following 2022 tort reform laws as a key reason.

When will the lower rates take effect?

The rate reductions are set to roll out in 2026.

How does this compare to other insurers?

Progressive also announced a $1 billion rebate this year, signaling broader market stability.