Florida drivers should be getting a rebate check from their auto insurance as State Farm files to cut their rates by 10% thanks to a Florida law aimed at preventing abuse and fraud in the legal system. FOX 13 Matthew McClellan reports.
TAMPA, Fla. – State Farm, one of Florida’s largest auto insurers, has filed to lower auto insurance rates by 10% for drivers across the state.
Timeline:
If approved, the reduction would take effect in early 2026 and deliver additional savings to roughly two million policyholders.
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The company says the filing continues a trend of returning value to customers as market conditions improve. Since October 2024, State Farm has reduced its overall auto premiums by more than 20%, resulting in a total annual savings of over $1 billion statewide.
What they’re saying:
“This isn’t happening by accident,” wrote Allyson Watts, senior vice president at State Farm, in an op-ed published in September. “It’s the direct result of Florida’s legislators and insurance regulators recognizing the impact of rising insurance costs — caused by over-litigation — and being willing to hear industry concerns and tackle the real problems behind the rising costs.”
Watts credited the state’s legal and insurance reforms for creating a “healthier marketplace,” but added that inflation and repair costs remain challenges.
What’s driving it?
Dig deeper:
The Florida Office of Insurance Regulation (OIR) confirmed State Farm’s filing this week and said it reflects “strong underwriting gains” and fewer lawsuits statewide.
Those trends follow House Bill 837, a 2023 tort reform law that limited attorney fees and shortened the time frame for filing lawsuits. Insurers say these changes have helped reduce claims costs. According to OIR, Florida’s five largest auto insurers have posted an average 6.5% rate decrease in 2025, reversing years of sharp increases.
Progressive and other major carriers have also issued rate cuts or refunds, signaling what regulators describe as early signs of long-term stability after years of volatility.
The Source: This article was written with a Florida Office of Insurance Regulation press release from Oct. 23, 2025, a State Farm op-ed by Allyson Watts, Sept. 24, 2025 and the Florida Office of Insurance Regulation filing from State Farm​​.