Commissioner Notes New Auto Insurance Rate Reductions in Louisiana

Louisiana’s insurance commissioner has approved new rate decreases for private passenger auto policies for two major auto insurers in the state.

Insurance Commissioner Jim Donelon has approved Progressive Insurance Group’s filing for a rate decrease of 2.3% on new business effective Aug. 21 and renewal business effective Sept. 18. Louisiana Farm Bureau Group’s filing for a rate decrease of 7.5% on new and renewal business, both effective Oct. 1, also has been approved.

Farm Bureau previously received approval for a 4.4% rate decrease in October 2019. The insurer has requested decreases totaling 11.9% in the last 12 months.

The decrease taking place this autumn for Progressive marks the fourth consecutive decrease for the insurer in the last 22 months totaling 6.2%.

Both companies’ newest rate decreases follow the recent announcement by State Farm Insurance Company of a rate decrease of 9.6% in July.

Combined, the three companies cover more than 50% of the private passenger auto insurance market in Louisiana and total 1.5 million policies.

Source: Louisiana Department of Insurance