State Farm announced an average auto insurance rate reduction of more than 8% for drivers in South Carolina, effective February 16, 2026. The change applies to both new and existing private passenger auto policies and is expected to reduce annual premiums by more than $127 million statewide, with savings averaging over $100 per vehicle.

The insurer said the decrease follows recent trends showing lower automobile damage claim costs. Combined with previous adjustments, State Farm’s auto rates in South Carolina have declined by about 14% over the past year.

In addition to the rate reduction, State Farm Mutual Automobile Insurance Company will issue dividends to eligible mutual auto policyholders. Drivers in South Carolina who held a policy in 2025 will receive an average payment of $131 per vehicle, totaling about $151 million across the state.