One of Louisiana's largest auto insurers plans to cut its rates for drivers, starting in November.
State Farm announced Thursday that it will drop car insurance rates for more than 1 million policyholders by 2.6%. The insurer says that will be the fourth rate reduction in two years, a total cut of more than 10%.
The lower premium charges will begin on November 25th, when drivers get new or renewed policies.
State Farm spokesperson Felicia Van Frank says the company's rates have been steadily dropping for several years as costs have decreased in Louisiana.
“This is our fourth rate filing in the last two years so, overall, our customers should see an average rate reduction of about 10.4 percent.”
Those rate changes may be dependent on one's policies.
Van Frank says the savings will improve their own expense situation and lower loss numbers.
“We have seen some reduced expenses driven by company changes in technology and efficiencies, along with a reduction in losses. So that helps support our decision to make this rate change.”
The 2.6 percent decrease equates to about 36.6 million dollars in savings for State Farm customers.
Van Frank says there are other ways drivers can lower their insurance rates. And, this would be a good time for State Farm customers to check with their agent.
“We are suggesting that customers reach out and talk to their local agent about their individual situation and look at their various coverage options.”