State Farm Files 10% Auto Insurance Rate Cut for 2 Million Florida Policyholders

State Farm has filed for a 10% reduction in auto insurance rates for Florida drivers, marking its fourth rate cut in the past year and bringing total reductions to over 20% since October 2024. These cuts are expected to save roughly two million policyholders more than $1 billion annually, averaging over $400 per vehicle. The rate decreases are attributed to Florida's recent legal and insurance reforms, including House Bill 837, which limited attorney fees and shortened the timeframe for filing lawsuits, contributing to fewer claims and a healthier insurance market. The Florida Office of Insurance Regulation confirmed these strong underwriting gains and noted that the state's five largest insurers have collectively reduced rates by an average of 6.5% in 2025, signaling early signs of market stability. While State Farm is reducing rates, it does not plan to issue refunds, differing from Progressive, which recently announced a nearly $1 billion credit to Florida policyholders due to excess profits. Governor Ron DeSantis and the Office of Insurance Regulation have praised the reforms and encouraged insurers to proactively return profits to customers, highlighting ongoing efforts to improve affordability and competition in Florida's auto insurance market.