BATON ROUGE, LA (WVUE) - Lower auto coverage rates are on the way for State Farm customers in Louisiana.
State Insurance Commissioner Jim Donelon said Friday State Farm covers one-third of Louisiana's driving population, or about a million customers.
"They are getting a 3% rate decrease starting September 1 and that's going to follow a just implemented July 1, 2.8% rate decrease that State Farm took earlier this year. That decrease they pointed to in part the tax reduction act congress had passed in December, but also in part back in January they said their loss experience had stabilized and they were seeing positive trends on their loss experience in Louisiana and other states," said Donelon.
He thinks other insurers will follow suit.
"Indeed, for the past two years coincidentally we've had overall statewide increases of 8.7%... but at half-year end, June 30th, the statewide increases are 2.3% and a year ago, half-year end was 4.7%, twice what it is this year, so I'm hopeful that we're going to see a flattening of rates and hopefully down the road," said Donelon.
However, Louisiana still has some of the highest rates in the country, according to Donelon.