Louisiana Insurance Commissioner Jim Donelon has announced his approval of a permanent decrease of 9.6% in the rate for auto insurance policies issued by State Farm Insurance Company for Louisiana drivers. This auto insurance reduction by State Farm follows approved decreases of 4.5% in 2018, 6.5% in 2019, and 2.3% in March of 2020, which total a 23% 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,” said Commissioner Donelon. “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.”
Additionally, Louisiana’s private passenger auto insurers continue to return auto premium to Louisiana drivers as a response to emergency declarations and stay at home orders in place throughout the U.S. and Louisiana. Insurers are seeing significantly fewer miles driven, resulting in a reduction in the frequency of accidents and claims filing, as well as ultimate 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.
At the time of publication, the insurers 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 |
** These insurers are offering a flat payment per vehicle.