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, which total a 23% decrease in the last two years.
The effective date of State Farm’s current reduction is Aug. 24 for new and renewal policies.
Louisiana’s private passenger auto insurers continue to return auto premiums 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.