TAMPA, Fla. – State Farm, one of the largest auto insurance providers in Florida, has submitted a proposal to reduce auto insurance rates by 10% for drivers across the state.
The company states that this move is part of an ongoing effort to pass on savings to customers as market conditions improve. Since October 2024, State Farm has already cut its overall auto premiums by over 20%, amounting to more than $1 billion in savings for Floridian drivers on an annual basis.
What they're saying:
"This is no coincidence," said Allyson Watts, senior vice president at State Farm, in a September op-ed. "It’s the direct result of Florida’s legislators and insurance regulators addressing the rising insurance costs—caused by excessive litigation—and actively engaging with the industry to solve the underlying issues."
Watts praised recent legal and insurance reforms in the state for creating a "healthier marketplace," though she noted that inflation and repair costs remain ongoing challenges.
What’s driving it?
A closer look:
The Florida Office of Insurance Regulation (OIR) confirmed the filing this week, noting that it reflects "strong underwriting gains" and a reduction in lawsuits statewide.
These positive trends follow the passage of House Bill 837 in 2023, a tort reform law that limited attorney fees and shortened the time frame for filing lawsuits. Insurers credit these changes with helping lower claims costs. According to the OIR, the five largest auto insurers in Florida have collectively decreased their rates by an average of 6.5% in 2025, reversing the steep rate hikes seen in previous years.
Other major insurers, including Progressive, have also announced rate cuts or refunds, signaling early signs of long-term stability in the market after years of volatility, according to regulators.
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