Louisiana Insurance Commission approves fourth consecutive auto rate decrease for State Farm
BATON ROUGE, La. (WAFB) - Louisiana Insurance Commissioner Jim Donelon announced Monday, July 6 he has approved of a permanent rate decrease of 9.6% in auto insurance policies issued by State Farm Insurance Company for Louisiana drivers.
Donelon says this is the fourth consecutive rate reduction by State Farm. The previous rate decreases include 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 Commissioner 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 says other auto insurance companies continue 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 and claims filing, as well as ultimate lawsuits being filed,” Donelon says.
The effective date of State Farm’s current reduction is August 24, 2020, for new and renewal policies.
If policyholders have any questions about rebates or refunds, they should contact the Louisiana Department of Insurance at 1-800-259-5300 or by visiting www.ldi.la.gov.
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