State Farm / CC
State Farm auto insurance policyholders can expect nearly a 10% decrease in their rates. Insurance Commissioner Jim Donelon says the drop is not linked to recent tort reform.
“This is a national rate decrease that’s being done to the same extend in every state in America by State Farm,” said Donelon.
State Farm is the largest auto insurer in the state, with a million policyholders. Donelon says the rate decrease can be attributed to people staying at home and off the roads during the beginning of the coronavirus pandemic.
“Therefore, accidents are down. Therefore claims and even litigation is down as a result of stay at home orders,” said Donelon.
Donelon says this decrease, combined with three other rate decreases in the last couple of years has resulted in a 23% total rate decrease. If history is any indication, Donelon anticipates other insurers will be following State Farm’s lead.
“They followed suit because those three rate decreases in our state were driven by competition,” said Donelon.
The effective date of State Farm’s current reduction is August 24.
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