State Farm Announces New Auto Rate Reduction for Texas Drivers

Spring 2026 begins with welcome news for State Farm auto customers across the state of Texas. The company announced its latest rate decrease - bringing auto rates down more than an average of -4.1%. New business customers began seeing the savings in their auto policies April 15^th, while renewal business will take effect June 4th.

Our overall reduction amounts to more than $250 million in lower total annual premiums for our Texas customers (private passenger cars), averaging more than $60 in savings per vehicle. This amounts to combined auto rate decreases of more than 7% in the last five months for Texas drivers. Recent trends involving less costly automobile damage claims have allowed State Farm to lower auto rates.

In addition to the auto insurance rate reductions, State Farm Mutual Automobile Insurance Company (State Farm Mutual) also announced it is paying cash back to mutual auto customers through a dividend. Eligible State Farm Mutual auto customers in Texas who had a policy in 2025 will receive an average payment of $105 per vehicle. The payments will vary by premiums paid. We encourage customers to contact their agent to discuss additional ways to save even more.

Learn more about how State Farm is reducing auto rates across the country by visiting our newsroom and how the company is giving cash back to auto customers in our recent dividend announcement.