State Farm Mutual Automobile Insurance Co. filed to cut average private-passenger auto rates in California by 6.2%, saying physical damage losses keep drifting downward and claims activity looks lighter than a year ago.
The request arrives not long after the company pushed through an overall 17.7% rate increase for its independent California auto program, according to Best’s State Rate Filings.
The swing reflects how quickly the loss environment has shifted (see US Auto Insurance Rates by States).
State Farm said fewer claims are lowering both comprehensive and collision losses. The carrier expects the reduction to take effect in the first quarter of 2026 if regulators sign off.
Senior Vice President Dan Krause said the filing matches what he called increasingly competitive rates in the state’s market. State Farm still holds the top spot in California for both personal auto and homeowners.
“Eligible customers are already seeing returned value and improved policy benefits as we approach 2026,” the news release says.
These changes will benefit current customers at renewal, as well as new and returning customers. With positive trends including less costly physical damage claims, we can now offer these auto rate reductions to better serve customers.
Rate reductions will vary by individual policy and renewal date, the release says. It adds that changes are subject to regulatory approval and could differ.
“The costs of auto and home ownership are rising. Insurance rates have spiked across the U.S. due to surging replacement costs, inflation, supply chain disruptions, and more frequent severe weather catastrophes,” Dan Krause says. “We know that price matters as much as service. As a result, regular rate reviews and adjustments are necessary to help keep insurance coverage available and affordable for our customers.”
California Insurance Commissioner Ricardo Lara earlier adopted an administrative law judge’s ruling approving State Farm General’s interim property rate increases of 15% to 38%. That decision landed in May 2025 and shaped the backdrop for today’s filing.
“As many Americans continue to face challenging economic conditions, State Farm is actively working with elected officials and industry partners on creating a sustainable insurance environment in California – one that balances risk and increased rates, ensures long-term market stability and availability,” the Dan Krause says.
State Farm has been trimming auto rates in other states as well, including Georgia and Florida, signaling a broader recalibration as loss trends cool and competition ramps back up.
In a Georgia release, the insurance company states it has filed for another 3% decrease, which would be an overall reduction of 10% in the past year in the state.
The overall reduction since December 2024 amounts to more than $400 million in lower total annual premiums for customers in Georgia, averaging over $190 saved per vehicle, the release says.
“We are pleased to help our customers save money by offering increasingly competitive rates, combined with the personalized attention of our local agents and first-rate customer service,” said State Farm Senior Vice President Allyson Watts.
Serving our Georgia customers by offering affordable private passenger auto insurance remains a top priority for State Farm.
The Georgia release also states that the company can lower auto rates due to fewer costly physical damage claims.
