Insurance Commissioner Tim Temple has approved State Farm’s request for a 5.9% average rate decrease on its over 1,066,000 personal auto insurance policyholders. State Farm is the largest personal auto insurer in Louisiana and writes approximately 30% of the market. The change takes effect Jan. 1, 2026. Rate changes are statewide averages, so each policyholder’s rate change will vary based on their individual risk.
State Farm indicated its decrease was primarily driven by a reduction in the frequency of physical damage claims.
“I’m glad to see positive movement on auto rates in Louisiana for the first time in years,” said Commissioner Temple. “Because fewer accidents are contributing to these lower losses for insurers, we should not necessarily expect to see this level of decrease in future years unless we continue to pursue legal reform that addresses the foundational reasons our rates are the highest in the country.”
Additionally, State Farm was approved for a 9.7% average increase on its over 300,000 homeowners insurance policyholders. State Farm is the largest homeowners insurer in Louisiana and writes approximately 20% of the market. This change is in effect now for new business and takes effect Dec. 15, 2025, for renewal business. Rate changes are statewide averages, so each policyholder’s rate change will vary based on their individual risk.
State Farm indicated this increase is primarily driven by its hurricane modeling, which projects higher future losses in Louisiana, along with increased non-catastrophe loss experience.
“Addressing the affordability of homeowners insurance in Louisiana will require continued commitment to improving the insurance marketplace, as well as a serious focus on strengthening the resilience of our homes and communities,” said Commissioner Temple. “The Louisiana Fortify Homes Program is foundational to this effort, as is supporting the Coastal Protection and Restoration Authority’s mitigation efforts and embracing stronger—and better-enforced—building codes.”
Consumers may review all property and auto rate filings online with the Louisiana Department of Insurance’s new user-friendly rate filing search tool.
