MONROE, La. – Insurance Commissioner Tim Temple has given the green light to State Farm’s proposal for a 5.9% average reduction in rates for over 1,066,000 personal auto insurance policyholders. This decision reflects a favorable change for many drivers in the state. Consequently, those affected will see the adjusted rates come into effect starting January 1, 2026.
However, it’s notable that State Farm has also received approval for a 9.7% average increase for more than 300,000 homeowners’ insurance policyholders. This adjustment will take effect immediately for new policies, while existing policyholders will see the changes starting December 15, 2025.
State Farm stands as Louisiana’s largest personal auto insurer, holding about 30% of the market share, as specified by the Louisiana Office of Insurance. The company attributes the reduction in auto insurance rates to a decline in the frequency of physical damage claims. Conversely, the anticipated increase in homeowners’ insurance rates is largely due to updated hurricane modeling, which suggests higher future losses in Louisiana alongside rising non-catastrophe loss experiences.
These changes apply statewide, meaning each policyholder’s rate adjustment will be influenced by their unique risk profile. Overall, while auto insurance customers can benefit from a reduction, homeowners face an increase, reflecting the complexities of insurance underwriting in response to local risks.