Auto rate cuts to benefit 1.5 million Louisiana drivers
Seeking to retain customers in a competitive marketplace, three insurers are cutting their rates in the Pelican State.
On Monday, Louisiana Insurance Commissioner Jim Donelon announced that the Louisiana Farm Bureau will mimic the downward rate trend in the state, first started by State Farm and Progressive insurance companies, requesting a –4.4% rate decrease on its 220,000 automobile policies.
“In the last year, three of the top auto insurers in our state have sought rate decreases for Louisiana drivers. This reduction, along with those previously taken by State Farm and Progressive, further confirms that automobile insurance competition in Louisiana is moving premiums in the right direction,” Commissioner Donelon said in a statement announcing the rate cuts.
The reduced rates are projected to take effect August 1, 2019 for new and renewed policies.
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Rate cuts for 1.5 million drivers
Earlier this year, Progressive and State Farm both reduced their auto policy rates in Louisiana in an effort to make gains in a competitive market place and retain market share.
On Monday, Commissioner Donelon approved a 2.2% rate decrease for private passenger automobile policies through Progressive Security Insurance, the second largest auto insurer in Louisiana.
Over the last year, three rate cuts have been approved for State Farm, the state’s largest auto insurer serving over 1 million policyholders. The three separate cuts over a 9-month span resulted in a total rate reduction of 7.7%.
The combined cuts across all three insurance providers will benefit roughly 1.5 million Louisiana drivers this year.
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