ORLANDO, Fla. — State Farm has announced a 10% rate cut for its auto insurance customers in Florida, effective January 2 for new policies and March 14 for renewals.
The rate reduction, filed with the Florida Office of Insurance Regulation, is part of a broader trend among large insurers in the state to lower premiums following recent legislative reforms.
State Farm explained that the reductions are due to legislative changes in Florida, enabling it to lower costs for policyholders.
State Farm’s filings show a rate decrease for its Mutual Automobile and Fire and Casualty products, impacting about 2.5 million policies in Florida. Since October 2024, the company has reduced rates, saving customers over $1 billion—approximately $400 per vehicle.
In August, State Farm reduced rates by 4.4% for State Farm Mutual and 7.9% for State Farm Fire and Casualty.
This announcement follows a news conference by Gov. Ron DeSantis, where he highlighted Progressive Insurance’s plan to return nearly $1 billion in excess profits to its customers.
Florida law requires auto insurers to return excess profits if underwriting gains exceed expected profits by more than 5% of the earned premium over a three-year period.
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