Car insurance companies in La. announce rate reductions amid COVID-19 pandemic

BATON ROUGE, La. (WAFB) - Several car insurance companies in Louisiana have announced they’ll be giving customers a bit of a break during the coronavirus pandemic.

GEICO

To provide relief during COVID-19, GEICO has chosen to credit its customers 15% for their next full policy term. That’s the entire six months of the policy. For example, if your policy is $1,000 for six months, your credit will be $150 at your renewal. Customers do not need to take any action to receive the discount.

GoAuto

GoAuto Insurance announced that all current Louisiana automobile insurance policyholders would see a reduction in monthly premium payments during the current pandemic.

The rate decrease, due to a reduced number of cars on roads leading to fewer wrecks, will last through May 31 and may be extended if the Shelter in Place order is continued. This announcement affects nearly 82,000 current Louisiana customers for a total reduction in savings of more than $4.2 million.

This action is effective for all active Louisiana GoAuto Insurance policies as of April 1. Current and new policyholders must make a payment between April 1 through April 30, and May 1 through May 31, to receive the discount.

State Farm

In an effort to help customers during these challenging times, State Farm Mutual Automobile Insurance Company, the nation’s largest auto insurer, is announcing up to a $2 billion dividend that will go to its auto insurance customers. With schools and businesses closed, and many sheltering in their homes, people are driving less right now, so State Farm is returning value to customers as it anticipates fewer auto claims.

Customers do not need to take any action to receive this dividend, which will appear as a credit on their auto policy.

The dividend is part of the Good Neighbor Relief Program, which also includes customer payment options and neighborhood philanthropic relief. This is the single largest dividend paid to customers in the company’s history.

On average, State Farm Mutual auto customers can expect to receive a credit of about 25% of premium for the time period March 20 through May 31; exact percentages will vary by state. Every State Farm Mutual auto insurance customer will receive credits applied against bills beginning as early as June.

Customers with questions should click here for contact information, or call their agent directly.

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