Beginning in April, Louisiana customers of State Farm Mutual Automobile Insurance Co. will see a decrease in their auto insurance rates, the insurance department announced.
It will be the third rated decrease filed by the company in less than a year that has been approved by Insurance Commissioner Jim Donelon.
With the rate decrease set to go into effect in April, more than one million policyholders in Louisiana will see a 3.2 percent decrease in their rates. The two previous State Farm rate decreases that took effect within the past year are a 2.7 percent drop for State Farm coverage on private passenger vehicles, effective in July 2018 and a 1.8 percent decrease that took effect in September 2018.
The total impact of the rate changes taken together is -7.7 percent, the department said.
“These decreases are directly attributable to competition in the auto insurance marketplace and again demonstrates that competition is truly the best protection for policyholders,” Donelon said in a departmental release. He added that State Farm’s actions “will pressure other insurers to take similar steps.”
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