Cost of Louisiana Auto Insurance to Drop Further
BATON ROUGE – State Insurance Commissioner Jim Donelon announced his approval of rate decreases for private passenger auto policies for two major auto insurers in Louisiana. Progressive Insurance Group submitted a rate filing for a decrease of 2.3% on new business effective Aug. 21 and renewal business effective Sept. 18. Louisiana Farm Bureau Group submitted a rate filing for a decrease of 7.5% on new and renewal business, both effective Oct. 1.
Farm Bureau previously received approval for a 4.4% rate decrease in October of 2019. The decrease taking place this autumn for Progressive marks the fourth consecutive decrease for the insurer in the last 22 months totaling 6.2%. Farm Bureau has requested decreases totaling 11.9% in the last 12 months. Both companies’ newest rate decreases follow the recent announcement by State Farm Insurance Company of a rate decrease of 9.6% last month. Combined, the three companies cover over 50% of the private passenger auto insurance market in Louisiana and total 1.5 million policies.
“These rate decreases are further proof that increased competition in the state’s auto insurance market is continuing to bring about savings for our policyholders,” said Donelon. “When we see rate decreases from one of our top ten companies, it usually isn’t long for the rest to follow suit.”