State Farm has filed for its fourth auto insurance rate reduction in Florida within a year, lowering average personal automobile premiums by 10%, according to company spokesperson Michal Brower.
The insurer noted that the latest filing follows three previous rate cuts over the past 12 months, resulting in a combined 20% decline in premiums for policyholders.
“We wholeheartedly agree with the governor and the Office of Insurance Regulation that reduced litigation has contributed to falling rates, and that’s why State Farm has been returning value to our customers in the form of rate cuts,” Brower said.
The rate reductions come as Florida insurers navigate state regulations requiring personal auto rates that are not excessive, inadequate, or unfairly discriminatory while promoting reasonable price competition.
State Farm, which held a 17.57% market share in Florida’s private-passenger auto insurance market in 2024, does not plan to issue excess refunds despite the rate cuts.
“Refunds do not currently apply to State Farm as we have been consistently reducing our auto rates over the last year,” Brower noted.
The company’s approach differs from Progressive Corp., Florida’s largest personal auto insurer with a 24.47% market share. Progressive set aside a $950 million credit at the end of the third quarter, representing its current estimate of excess permitted profit for personal auto in Florida from 2023 through 2025. Progressive had reduced rates in December 2024 and again in June 2025, BestWire reported.
Florida’s private passenger auto insurers must report premiums, losses, and loss adjustment expenses, along with other related costs and profits, for each of the three most recent calendar accident years. The statute aims to regulate insurance rates while fostering fair price competition.
The five largest writers of private-passenger auto insurance in Florida in 2024, based on direct premiums written, were Progressive Insurance Group (24.47%), Berkshire Hathaway Insurance Group (19.82%), State Farm Group (17.57%), Allstate Insurance Group (10.54%), and USAA Group (6.22%), according to BestLink.
State Farm cited decreased litigation as a key factor enabling the rate reductions, aligning with statements from state officials on changing market conditions in Florida’s auto insurance sector.
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