Insurance Commissioner Jim Donelon announces his approval of another rate decrease for State Farm Mutual Automobile Insurance Company. Over the last nine months, Commissioner Donelon granted to State Farm approval for three rate decreases for coverage on private passenger vehicles. The total impact of the rate changes taken together is -7.7 percent. For Louisiana, this evidences a slowing of rate increases seen nationwide in recent years driven by distracted driving and other factors.
“These decreases are directly attributable to competition in the auto insurance marketplace and again demonstrates that competition is truly the best protection for policyholders,” said Commissioner Donelon. “These reductions are welcome news for one third of our state’s auto policyholders who are insured by State Farm and this action will pressure other insures to take similar steps.”
More than one million policyholders in Louisiana will see a decrease of -3.2 percent which will take effect in April. This is on top of a -2.7 percent decrease for State Farm coverage on private passenger vehicles that took effect in July and a -1.8 percent decrease that took effect in September.
About the Louisiana Department of Insurance:The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by calling 1-800-259-5300 or visiting www.ldi.la.gov.