20 auto insurers ask for rate reductions in Louisiana
Louisiana Department of Insurance Commissioner Timothy J. Temple recently announced that multiple auto insurance companies are reducing premiums in the state.
He said the reductions are driven primarily by reduced accident frequency in the state.
“As cost drivers in the market go down, losses go down with them, and businesses are incentivized to compete for customers through lower pricing,” Temple said in a release. “While it will take time for this year’s legal reforms to take effect and begin making a difference, it is a positive sign that insurers saw fewer accidents in 2024 and early 2025.”
Since the start of the year, more than 20 auto insurance companies have filed for rate decreases in the market, the release says. It says that 14 of the decreases were more than 1%. This includes 13 private passenger auto filings and one commercial auto filing.
The insurance companies generally cited reductions in accident frequency as the primary reason for the decrease.
Hugo insurance requested the largest percent reduction of 13.6% impacting $96,103 written premiums.
However, State Farm had the largest written premium reduction of $1.8 billion with a 3.9% decrease.
Other insurance companies asking for reductions include, but are not limited to, Allstate, GEICO, Liberty Mutual, Progressive, and GM National.
The state says it approved an increase of 2.2% in 2024 for private passenger auto premiums. This was down from rates increasing 15.3% in 2023 and 10.8% in 2022. As of July of this year, insurance rates have decreased overall by 2.3%.
In 2022, there were 70 requests for increases and three for decreases. The state saw 76 requests for increases and two for decreases in 2023. During 2024, there were 49 requests for increases and nine requests for decreases.
As of July, the state has seen 13 requests for increases and 19 for decreases.
The press release also notes that Temple has collaborated with legislators to develop and pass legal reform aimed at strengthening the auto insurance market by reducing excessive lawsuits and inflated bodily injury claims.
“Our focus on improving our regulatory and legal environments while ensuring rates are actuarially justified will promote competition and ultimately stabilize auto insurance premiums for Louisiana drivers,” Temple said. “As we’ve just seen in Florida, where the top five auto insurers have filed for rate decreases in 2025 after beginning to focus on reform in 2022, it can take a year or two of consistent reform to drive down rates.”
Florida Gov. Ron DeSantis announced in February that the state was seeing a reduction in rates following tort reform.
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