A COVID-19 benefit: Lower auto insurance rates

State Farm cuts rates for 4th time in 2-years

Thomas Perumean
July 07, 2020 - 7:10 am

For the fourth time, State Farm has rolled back insurance rates. 

Insurance Commissioner Jim Donelon explains the reason behind State Farm’s rate rollbacks, including the most recent one set to take effect in August. 

“The first three of which were specific to Louisiana and obviously driven by their desire to recoup the hundred thousand policies they had lost over the couple of years previously before that.  This however, this fourth consecutive rate decrease is a national rate decrease.”

Donelon says the cut has come about because of the Shelter-at-home orders across the United States:

“As result of those stay-at-home orders miles driven are down, therefore accidents are down, claims are down, lawsuits are down.  But, cumulatively State Farm has taken 23% of total rate decreases over a two year period of time. 

Speaking with WWL, Donelon talked about his own efforts, recently, to lower insurance rates through a sweeping piece of lawsuit reform legislation he backed.

“What I do in the just completed session is try to bring some common sense to our judicial system that would have lowered, significantly, the cost of auto insurance.”

That legislation was ultimately vetoed by Governor John Bel Edwards. 

The new rate cuts put forth by State Farm take effect in August. 

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