State Farm Raising Auto Insurance Rates in Louisiana

State Farm is increasing auto insurance premiums in Louisiana for liability, collision and comprehensive coverage by a statewide average of 3.7 percent.

The auto rate increase will generate $40.4 million annually from State Farm’s 1 million customers in Louisiana, which averages out to about $40 per customer. However, rates and increases will vary depending on a number of factors, including repair costs, where a person lives, their coverage and the discounts for which they qualify.

New Orleans customers will see their rates rise an average of 5.7 percent, while in Lafayette, rates will rise an average of 2.5 percent. In West Baton Rouge Parish, rates will increase an average of 2.5 percent. In Baton Rouge, rates will increase by an average of 4.4 percent.

The company’s last automobile rate increase, an average of 3.5 percent statewide, took effect in February. The latest rate increases start Dec. 8. For existing customers, they take effect upon policy renewal.

Auto insurance rates in Louisiana are, and have been, among the highest in the United States.

The highest rates in Louisiana are found in Orleans, St. Bernard, Plaquemines and Jefferson parishes. Rates on the West Bank will rise an average of 5.2 percent, according to State Farm, and 5 percent in the Metairie area.

Insurance Commissioner Jim Donelon has said Orleans motorists paid 40 percent more for auto coverage than the average statewide.