State Farm auto rate decreases; overall insurers return millions to Louisianans

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BATON ROUGE, La. (KTAL/KMSS) – Louisiana Insurance Commissioner Jim Donelon has approved a permanent decrease of 9.6 percent for auto insurance policies issued by State Farm Insurance Company for Louisiana drivers.

This reduction by State Farm, follows approved decreases of 4.5 percent in 2018, 6.5 percent in 2019 and 2.3 percent in March, adding up to a total 23 percent decrease in the last two years.

“State Farm provides auto insurance for more than a million Louisiana policyholders and has been at the forefront of giving consumers relief from their auto premiums due to decreased driving during the COVID pandemic,” Donelon said. “We’ve seen many other local and national insurers do the same since the issuance of nationwide stay at home orders that have resulted in Louisiana policyholders receiving over $202 million dollars in rebates or refunds.”

In addition, Louisiana’s private passenger auto insurers continue to return auto premiums to Louisiana drivers as a response to emergency declarations and stay at home orders in place throughout the U.S. and Louisiana.

This can be attributed to the fact that insurers are seeing significantly fewer miles driven, resulting in a reduction in the frequency of accidents and claims filing, as well as lawsuits being filed.

The effective date of State Farm’s current reduction is August 24, 2020 for new and renewal policies. If policyholders have any questions about rebates or refunds, they should contact the Louisiana Department of Insurance at 1-800-259-5300 or by visiting www.ldi.la.gov.

But State Farm is not the only insurers in Louisiana who has lowered rates or issued rebates.

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

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