State Farm cuts Tennessee auto rates

State Farm  is lowering auto insurance rates for Tennessee drivers for the second time this year, citing improving loss trends and lower auto damage claim costs.

The latest filing delivers an average rate decrease of more than 10%, effective December 15 for new business and rolling out to existing policyholders at renewal starting in January. Combined with a prior reduction implemented in April, State Farm’s auto rates in Tennessee will be down more than 17% on average in 2025.

According to the carrier, the cumulative cuts will translate into more than $252 million in lower annual premiums for Tennessee private passenger auto customers, or roughly $200 in savings per vehicle.

State Farm said easing claims severity has created room to reduce rates, and encouraged customers to speak with their local agents about additional ways to manage costs amid ongoing economic pressure.