State Farm to Further Decrease Auto Insurance Rates in Louisiana

State Farm Insurance Co. has been approved for an overall auto insurance rate decrease of 9.6% in Louisiana, the state insurance department reported.

State Farm’s rate reduction most recently approved by Louisiana Insurance Commissioner Jim Donelon 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.

The effective date of State Farm’s current reduction is Aug. 24, 2020, for new and renewal policies.

Louisiana’s private passenger auto insurers continue to return auto premium to Louisiana drivers in response to emergency declarations and stay at home orders in place throughout the U.S. and Louisiana as a result of the COVID-19 pandemic. Insurers are seeing significantly fewer miles driven, which has let to a reduction in the frequency of accidents and claims filing, as well as ultimate lawsuits being filed.

Donelon said in a media release that auto insurers in his state have provided drivers with more than $202 million dollars in rebates or refunds during the COVID-19 pandemic.

At the time of publication, the insurers below have announced or provided the Louisiana Department of Insurance (LDI) with the details of a rebate or rate reduction program and these insurers provide coverage to 97% of Louisiana’s insured drivers.

Companies Offering Premium Payback Due to COVID-19 Group/Company 2019 Market Share COVID-19 Related Return Premium # Months Return Premium Projected Return Premiums STATE FARM GRP 29.5% 25% 2.37 $ 71,099,231 BERKSHIRE HATHAWAY GRP (GEICO) 11.7% 15% 6 $ 42,895,623 PROGRESSIVE GRP 16.4% 20% 2 $ 26,769,931 ALLSTATE INS GRP 11.1% 15% 3 $ 20,255,162 USAA GRP 6.0% 20% 3 $ 14,703,613 SOUTHERN FARM BUREAU CAS GRP 5.4% 15% 2 $ 6,566,488 LIBERTY MUT GRP 4.1% 15% 2 $ 4,949,089 GOAUTO INS CO 3.3% 15% 2 $ 4,076,990 SHELTER INS GRP 1.4% 30% 2 $ 3,491,034 AMTRUST NGH GRP 2.4% 15% 1 $ 1,260,381 METROPOLITAN GRP 0.8% 15% 2 $ 1,031,830 ORPHEUS GRP 1.1% 10% 2 $ 929,520 AUTO CLUB ENTERPRISES INS GRP (AAA) 0.5% 20% 2 $ 848,445 KEMPER CORP GRP 0.7% 15% 2 $ 842,637 HARTFORD FIRE & CAS GRP 0.6% 15% 2 $ 673,438 THE HANOVER INS GRP 0.4% 15% 2 $ 516,007 HORACE MANN GRP 0.4% 15% 2 $ 506,248 FARMERS INS GRP 0.1% 25% 2 $ 298,775 AMERICAN FAMILY INS GRP 0.3% $50 5,919** $ 295,950 CHUBB LTD GRP 0.1% 6% 12 $ 186,195 ROOT INS CO 0.3% 10% 2 $ 254,725 AMICA MUT GRP 0.1% 20% 2 $ 163,389 PURE COMPANIES GRP 0.1% 15% 2 $ 159,441 TRAVELERS GRP 0.0% 15% 3 $ 47,861 PHARMACISTS MUT INS CO 0.0% $25 570** $ 14,250 MIDVALE IND CO 0.0% 15% 3 $ 2,047 BROTHERHOOD MUTUAL INS CO 0.0% 15% 2 $ – CLEARCOVER INS CO 0.0% 15% 1 $ – Total Proposed Refunds 97.0% $ 202,838,301

** These insurers are offering a flat payment per vehicle.

Source: Louisiana Department of Insurance