FOR IMMEDIATE RELEASE

April 10, 2020

 

Continued Competition in Louisiana Homeowners’ and Auto Markets Results in State Farm Rate Reductions

Insurance Commissioner Jim Donelon announced his approval of overall base rate decreases of 3.5% for homeowners’ policies issued by State Farm Insurance Company, which follows his approval of an additional decrease of 2.3% for State Farm auto policies in March 2020.

“In uncertain times like these, good news is hard to come by and I wanted to share a bit of good news for State Farm’s policyholders. These decreases are directly attributable to competition in our marketplace and again demonstrate that competition remains the preeminent safeguard for policyholders,” said Donelon. “In Louisiana, State Farm auto insurance reductions over the past 18 months have led to other major insurers lowering rates in the private passenger market and I believe this decrease will produce a similar result in the homeowners’ market.”

State Farm provides homeowners’ coverage to more than a quarter of a million policyholders in Louisiana. The statewide homeowners’ market in Louisiana has seen only a 1% increase in each of the past six years and this rate experience is a direct result of Louisiana adding 31 new insurers writing homeowners’ coverage in our state.

State Farm’s current 2.3% auto insurance reduction follows approved decreases of 4.5% in 2018 and 6.5% in 2019, for a total of 13.3% over the past 18 months. State Farm provides auto insurance for more than a million Louisiana policyholders.

The effective dates of State Farm Mutual ’s reductions are May 1, 2020 for auto policies and July 1, 2020 for homeowners’ policies.

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.