State Farm announced that the California Department of Insurance approved a 6.2% reduction in personal auto insurance rates for policies issued by State Farm Mutual Automobile Insurance Company.

The decrease will take effect May 8, 2026, applying to both new business and renewals, though the exact impact will vary by policyholder. The insurer said the change is part of broader efforts to return value to customers, noting that it has recently lowered auto rates in several states and announced a $5 billion cash back dividend for auto policyholders.

State Farm has operated in California since 1928 and currently serves nearly 7.9 million policies and accounts in the state through roughly 2,000 licensed agents.