MONROE, La. (KNOE) – Insurance commissioner Tim Temple approved State Farm’s request for a 5.9% average rate decrease for more than 1,066,000 personal auto insurance policy holders. Additionally State Farm was approved for a 9.7% average increase on more than 300,000 of its homeowners’ insurance policy holders. The changes will take place January 1, 2026.
State Farm is the largest personal auto insurance in Louisiana and writes approximately 30% of the market, according to the Louisiana Office of Insurance. State Farm indicated its decrease was primarily driven by a reduction in frequency of physical damage claims.
According to data from the State Insurance Office, State Farm is the largest homeowner’s insurer in Louisiana and writes approximately 20% of the market. This change is now effect in for new policies. While existing policy changes will go into effect on December 15, 2025.
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.
Rate changes for both vehicle and homeowner policies are statewide, meaning each policyholder’s rate change will vary based on their individual risk.
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.