The Bayou state is notorious for having some of the highest premiums in the nation, but many Louisiana drivers may be seeing their insurance rates drop. Insurance Commissioner Jim Donelon says the state’s largest auto insurer, State Farm, who covers about one million drivers in the state, has cumulatively seen about an 8% drop per year.
“State Farm has now three times in the last nine months, the most recent to go into effect on April 1, lowered their auto insurance premiums,” said Donelon.
Donelon says he believes one of the main contributors to the high rates, distracted driving, has seen its peak in Louisiana and now is on the decline.
“Distracted driving has been killing motorists in record numbers on our highways, but also causing many more accidents which drives the cost of auto insurance upward,” said Donelon.
Donelon says although State Farm covers about one million of the over 4 million people in the state, the rate cuts may also be attributed to the 10% drop in policy count State Farm has seen since the end of last year.
“I think they are taking these rate reductions in order to meet that competition and reclaim that business that they’ve lost in recent years,” said Donelon.
Donelon is running to maintain his position in the November election as a Republican and is being challenged by fellow Republican Tim Temple.
