State Farm is reducing private passenger auto rates in Texas by an average of 4.1%, with changes effective April 15, 2026 for new business and June 4, 2026 for renewals.

The move lowers total annual premiums by more than $250 million, or about $60 per vehicle on average, reflecting lower claim costs. Including prior actions, the company has reduced Texas auto rates by more than 7% over the past five months.

Separately, State Farm Mutual Automobile Insurance Company will issue a dividend to eligible Texas auto policyholders who held a policy in 2025, with average payments of about $105 per vehicle depending on premiums.