State Farm to Further Decrease Auto Insurance Rates in Louisiana

July 6, 2020

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.

COVID-19 Refunds

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.

PRIVATE PASSENGER AUTOMOBILE

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

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