COUNTRY Financial is cutting auto insurance rates for clients across 11 states, citing improvements in accident frequency and claims costs as the US personal auto market continues to rebalance after two years of sharp price increases.
The Illinois-headquartered insurer, which provides insurance and financial products to approximately one million households and businesses across 19 states, is reducing rates in Colorado, Georgia, Idaho, Illinois, Iowa, Minnesota, Missouri, North Dakota, Oregon, Tennessee and Wisconsin.
Colorado sees the largest reduction at 10%, followed by Illinois at 8% and Oregon and Wisconsin both at 7%.
The move reflects a broader easing in the US auto insurance market.
The average annual cost of full-coverage auto insurance declined 6% nationwide in 2025, falling to $2,144, with rates dropping in 39 states - a sharp reversal from the previous two years, when auto insurance costs surged 46% between 2022 and 2024. Those increases were driven by post-pandemic risky driving behavior, inflation, higher repair costs and elevated claims severity. With stronger margins restored, many carriers moved to cut rates in 2025 to retain existing policyholders and attract new customers.
Data from the Insurance Information Institute showed that US personal auto insurers posted a net combined ratio of 95.3 in 2024, their strongest post-pandemic result, after recording nearly $17 billion in underwriting losses in 2023 alone.
Major carriers furthered that turnaround in their 2025 results. State Farm's auto combined ratio improved to 93.5, more than 10 points better than the prior year, generating an auto underwriting profit of $4.6 billion and prompting the company to announce a $5 billion dividend payout to qualifying policyholders alongside rate reductions across 40 states. Meanwhile, Allstate posted an auto combined ratio of 85.0, an improvement of 10 points, while Progressive reported net income of $11.3 billion for full-year 2025.
Several of the states where COUNTRY Financial is now reducing rates were among those hardest hit during the prior cycle. ValuePenguin analysis of rate filing data projects Iowa, Minnesota, Missouri and Illinois among the states recording the largest rate decreases nationally in 2026.
Kelvin Schill, senior vice president of property and casualty operations at COUNTRY Financial, said the company regularly reviews its claims experience to ensure rates reflect real-world conditions.
"As costs come down, we look for ways to help our clients manage their expenses, especially during a time when inflation and other economic pressures continue to impact household budgets," he said.
While the near-term picture is positive for policyholders, insurance professionals are watching one significant headwind: the potential impact of tariffs on vehicle repair costs.
The full effects of tariffs have not yet hit repair costs, which are likely to rise in 2026, though insurers have not yet passed those costs to drivers via higher premiums.
Approximately six out of every 10 auto replacement parts used in US repair shops are imported, meaning a 25% tariff on vehicles and auto parts ripples through fender benders, windshield replacements and total loss claims alike.
For carriers currently competing on price to win back market share, an uptick in physical damage costs could quickly compress margins that have only recently been restored.
