Car insurance rebates are coming
Florida drivers should be getting rebate checks from their auto insurance as State Farm applies to reduce insurance rates by 10 percent due to a law in place designed to prevent abuse and fraud in the legal system. FOX 13's Matthew McClellan reports.
Tampa, Florida – State Farm, one of Florida's largest auto insurance companies, has applied to reduce auto insurance rates by 10 percent for drivers across the state.
schedule:
If approved, the reductions would take effect in early 2026 and result in additional savings for approximately 2 million policyholders.
Related: Progressive auto insurance to return $1 billion to Florida policyholders
The company said the filing continues a trend of returning value to customers as market conditions improve. Since October 2024, State Farm has reduced overall auto premiums by more than 20%, with annual savings totaling more than $1 billion statewide.
What are they saying:
“This did not happen by accident,” Allyson Watts, a senior vice president at State Farm, wrote in an op-ed published in September. “It is a direct result of Florida legislators and insurance regulators recognizing the impact of rising insurance costs caused by excessive litigation and being willing to listen to industry concerns and address the real issues behind the rising costs.”
Watts praised the state's legal and insurance reforms for creating a “healthier market,” but he 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 reflected “strong underwriting earnings” and a decrease in litigation across the state.
These trends follow House Bill 837, a tort reform law of 2023 that limits attorney fees and shortens the time frame for filing lawsuits. Insurers say the changes will help reduce claims costs. Rates for Florida's five largest auto insurance companies will drop an average of 6.5% by 2025, reversing years of steep increases, according to OIR.
Progressive and other major airlines also issued price cuts or refunds in what regulators called an early sign of longer-term stability after years of volatility.
Source: This article is based on a press release from the Florida Office of Insurance Regulation dated October 23, 2025, a State Farm op-ed by Allyson Watts on September 24, 2025, and documents filed by State Farm with the Florida Office of Insurance Regulation.
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