Louisiana drivers insured by State Farm are about to see sticker shock on their premiums. State Insurance Commissioner Jim Donelon said 29 percent of motorists in Louisiana have State Farm coverage.
“A rate increase of 17.3 percent for the million-plus policyholders in our state. This is being largely driven by collision and comprehensive coverage, not liability,” said Donelon.
Donelon said it’s a significant surge driven primarily by an increase in cost in the years since they took a rate increase with collision and comprehensive coverage of any significance.
“An increased cost in labor for repairs, and an increased cost in parts. It is being driven by inflation, by supply chain problems,” said Donelon.
The commissioner said he’s unhappy to impose additional costs to State Farm policyholders. He also said other insureres may seek similar increases.
“Not at the moment but I anticipate that will be the case,” said Donelon.
In 2020, State Farm lowered rates by almost ten percent and rates increased in 2021 by four percent. Donelon suggests auto policyholder price compare rates and coverage.
