Auto insurance rates decline in New Hampshire, Nevada amid market shift
The New Hampshire Insurance Department (NHID) has announced improvements in personal auto insurance markets in the wake of 2025 performance that led to dividends from State Farm.
NHID shared in a press release that the reduced premiums by multiple carriers are in addition to the state ranking among the lowest in the nation for average auto insurance premiums.
“These developments are a clear sign that a disciplined and competitive insurance market can deliver real value for consumers,” said Insurance Commissioner DJ Bettencourt in the release.
He added that the premium reductions and direct dividends are the result of market competition “functioning properly under steady, responsible oversight.”
State Farm has decreased its rates in New Hampshire by 11% following a year ending with double the net income from 2024 and a nationwide $5 billion dividend to policyholders. The decrease took effect Jan. 1.
The NHID recently approved several large personal auto insurance rate decreases, beginning with a 10% average reduction by Nationwide that went into effect in October 2025.
Ten percent and 4% decreases followed in January by Allstate and Travelers, respectively. Amica implemented a 6.1% decrease in September 2025, followed by an additional 3% decrease effective March 1.
In New Hampshire, that announcement is expected to affect 200,000 insured vehicles, with an average dividend payment of $80 per vehicle.
“While many states have experienced insurer withdrawals, coverage limitations, and significant market volatility in recent years, New Hampshire has maintained strong carrier participation and broad availability in the personal auto market,” the release states.
“Nationally, personal auto insurance faced substantial rate pressure in 2022 and 2023 as inflation drove up vehicle repair costs, labor shortages strained service capacity, supply chain disruptions delayed parts availability, and claims severity increased. As those pressures begin to ease, including improvements in collision frequency and repair cost trends, insurers in New Hampshire are beginning to reflect improved underwriting conditions in their rates.”
James Fox, NHID Property & Casualty director, added that the NHID requires rates that are neither inadequate nor unfairly discriminatory.
“This regulatory approach protects insurer solvency and allows competition to function,” he said. “When market conditions improve, insurers reduce premiums, and in the case of mutual insurers like State Farm, they return value directly to policyholders.”
The release notes that State Farm’s dividend reflects its mutual company structure, which allows policyholders, rather than shareholders, to benefit directly from strong financial performance.
“Insurance markets move in cycles, and the role of a regulator is to monitor those cycles responsibly, so consumers are protected from unnecessary instability,” said Deputy Insurance Commissioner Keith Nyhan in the release.
In Nevada, the Division of Insurance also issued a press release announcing that the State Farm dividend would benefit policyholders in the state with auto coverage in force as of Dec. 31, 2025, who will receive, on average, a $66 dividend per insured vehicle from State Farm.
A press release from the state’s insurance department states that State Farm has said payments will be distributed sometime this summer, either through direct deposit or by check.
Last month, State Farm said it planned to make a one-time distribution to qualifying customers across more than 49 million vehicles.
“The ability to issue dividends demonstrates the company is financially stable, maintaining a steady underwriting strategy and rating appropriately,” said Nevada Insurance Commissioner Ned Gaines in the release. “State Farm is demonstrating that as a mutual company, they are committed to providing value to their policyholders.”
State Farm’s net worth for 2025 was $170 billion, compared to $145 billion at the end of 2024.
Its auto insurance segment represented 63% of the property and casualty company’s combined net written premium, with earned premium at $71.3 billion.
In December, Louisiana Insurance Commissioner Tim Temple approved a 5.9% average rate decrease for State Farm auto insurance policies.
The insurer indicated to the state that the change is driven primarily by a reduction in physical damage claim frequency.
State Farm also said in November that a 6.2% decrease would be implemented in California, as well as a 3% decrease in Georgia. According to the company, its overall reduction in Georgia will add up to 10% over the past year.
In both states, State Farm said the reductions are the result of less costly physical damage claims; however, it hasn’t provided details on how physical damage claim costs have decreased.
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