State Farm Lowers La. Auto Insurance Rates by 9.6%
BATON ROUGE – Louisiana Insurance Commissioner Jim Donelon said he approved a permanent decrease of 9.6% in the rate for auto insurance policies issued by State Farm Insurance Company for Louisiana drivers. This auto insurance reduction by State Farm follows approved decreases of 4.5% in 2018, 6.5% in 2019 and 2.3% in March of 2020, which total a 23% decrease in the last two years.
“State Farm provides auto insurance for more than a million Louisiana policyholders and has been at the forefront of giving consumers relief from their auto premiums due to decreased driving during the COVID pandemic,” said Donelon. “We’ve seen many other local and national insurers do the same since the issuance of nationwide stay at home orders that have resulted in Louisiana policyholders receiving over $202 million dollars in rebates or refunds.”
Donelon’s office said that Louisiana’s private passenger auto insurers have also continued to return auto premiums to Louisiana drivers as a response to emergency declarations and stay-at-home orders in place throughout the U.S. and Louisiana. Insurers are seeing significantly fewer miles driven, resulting in a reduction in the frequency of accidents, claims and lawsuits.
The effective date of State Farm’s current reduction is August 24 for new and renewal policies.