INSURANCE

State Farm Drops Rates in California: The state’s largest insurer of autos said it has cut overall prices for auto coverage by an average of 5.3%. The company said prices fell on average for comprehensive, collision and liability coverage. However, the cost of coverage for uninsured motorists and medical payments rose. State Farm Mutual, a subsidiary of Bloomington, Ill.-based State Farm Life Insurance Co., last adjusted auto rates in September 1995, when it instituted a reduction of 1.7%.