Auto insurance rates drop for 1 million Louisiana drivers, but state remains among costliest - Monroe News Star
Greg Hilburn covers Louisiana politics for USA Today Network. Greg Hilburn/USA Today Network
Almost 1 million Louisiana drivers will see their auto insurance rates reduced later this year, but the state remains the second most expensive in the nation for vehicle insurance.
State Farm, the largest auto insurer in Louisiana with about one-third of the business, said it will reduce its auto rates 2.6% effective Nov. 25.
Company spokesman Jeff Davis said State Farm insures just fewer than 1 million drivers in Louisiana.
It's the fourth time during the past two years the company has dropped rates for a combined 10.4% reduction.
“We’re always evaluating how we can best serve our customers and are very pleased to be able to offer yet another rate decrease in Louisiana,” said State Farm Vice President of Agency Mark Cockerham. "Improving expenses and losses were important factors that supported our decision to make this rate change.”
But the rate reductions during the past two years followed an 8% increase in 2016 and 13% increase in 2017. The company has lost more than 100,000 auto customers since then.
State Farm said reductions for individual drivers will vary based on their policy. The total savings for Louisiana drivers: $36.6 million.
Earlier this year Progressive dropped its rates by 4.4% and Louisiana Farm Bureau dropped its rates by 2.2%, while Allstate raised its rates by 3.1% this year.
The 2019 average annual premium for Louisiana drivers is $2,298, second only to Michigan's average of $2,611, according to insure.com
Michigan, Louisiana and Florida are the only states with average annual premiums exceeding $2,000.
Louisiana's average annual premium is almost three times higher than Maine's, which is the least expensive state with an average premium of $845.
Earlier this year, state Rep. Kirk Talbot, R-River Ridge, carried an omnibus insurance reform bill in the Legislature that he believed would lead to overall rate reductions across all sectors, but it failed to pass.
The Louisiana Association of Business and Industry had called it the most important bill of the session.
Other bills that would allow courts to consider a defendant’s seat belt use when awarding damages have also failed in recent sessions.
Current law prevents juries from knowing if someone was or wasn't wearing a seat belt when hearing a vehicle injury-related case.
"Auto litigation is the single biggest driver of rates in Louisiana," Republican Louisiana Insurance Commissioner Jim Donelon has said.
Greg Hilburn covers state politics for the USA TODAY Network of Louisiana. Follow him on Twitter @GregHilburn1.
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