NEW ORLEANS — Louisiana drivers insured by State Farm may want to check their premium rates before renewing their auto insurance policies.
State Farm increased car insurance rates in Louisiana by 4.3% on average as of April 5, The Times-Picayune | The New Orleans Advocate reported. The rate change would apply to new customers and current customers who renew their policies.
State Farm insured more Louisiana drivers than any other company in 2019, accounting for about 30% of the state's market. That's more than Progressive, Geico, and Allstate combined, according to the Louisiana Department of Insurance.
The Louisiana Department of Insurance approved the rate change in December, The Times-Picayune | The New Orleans Advocate reported.
The increase comes less than a year after the company cut auto insurance rates in Louisiana by 9.6%. That price cut happened in July 2020, when fewer Americans were on the road because of the COVID-19 pandemic, a release from State Farm said.
State Farm spokesperson Angie Harrier told The Times-Picayune | The New Orleans Advocate that more Louisianans are hitting the road, leading to more accidents and claims — higher insurance rates.
"Our data indicates more people are driving, and it's resulting in an increase in auto claims from the levels in the spring of 2020," Harrier told The Times-Picayune | The New Orleans Advocate. "Even with these adjustments, rates remain below pre-COVID-19 levels."