07/08/2020
FOR IMMEDIATE RELEASE
July 6, 2020
Donelon Approves Fourth Consecutive Auto Rate Decrease for State Farm / $202 Million in COVID-19 Premium Returned to Louisiana Policyholders
Louisiana Insurance Commissioner Jim Donelon announces his approval of a permanent decrease of 9.6% in the rate for auto insurance policies issued by State Farm Insurance Company for Louisiana drivers. This auto insurance reduction by State Farm, follows approved decreases of 4.5% in 2018, 6.5% in 2019 and 2.3% in March of 2020, which total a 23% decrease in the last two years.
"State Farm provides auto insurance for more than a million Louisiana policyholders and has been at the forefront of giving consumers relief from their auto premiums due to decreased driving during the COVID pandemic," said Commissioner Donelon. "We’ve seen many other local and national insurers do the same since the issuance of nationwide stay at home orders that have resulted in Louisiana policyholders receiving over $202 million dollars in rebates or refunds."
Additionally, Louisiana’s private passenger auto insurers continue to return auto premium to Louisiana drivers as a response to emergency declarations and stay at home orders in place throughout the U.S. and Louisiana. Insurers are seeing significantly fewer miles driven, resulting in a reduction in the frequency of accidents and claims filing, as well as ultimate lawsuits being filed.
At the time of publication, the insurers below have announced or provided the Louisiana Department of Insurance (LDI) with the details of a rebate or rate reduction program and these insurers provide coverage to 97% of Louisiana’s insured drivers.
The effective date of State Farm’s current reduction is August 24, 2020 for new and renewal policies. If policyholders have any questions about rebates or refunds, they should contact the Louisiana Department of Insurance at 1-800-259-5300 or by visiting www.ldi.la.gov.
About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by calling 1-800-259-5300 or visiting www.ldi.la.gov.
PRIVATE PASSENGER AUTOMOBILE
Companies Offering Premium Payback Due to COVID-19
Group/Company 2019 Market Share COVID-19 Related Return Premium # Months Return Premium Projected Return Premiums
STATE FARM GRP 29.5% 25% 2.37 $ 71,099,231
BERKSHIRE HATHAWAY GRP (GEICO) 11.7% 15% 6 $ 42,895,623
PROGRESSIVE GRP 16.4% 20% 2 $ 26,769,931
ALLSTATE INS GRP 11.1% 15% 3 $ 20,255,162
USAA GRP 6.0% 20% 3 $ 14,703,613
SOUTHERN FARM BUREAU CAS GRP 5.4% 15% 2 $ 6,566,488
LIBERTY MUT GRP 4.1% 15% 2 $ 4,949,089
GOAUTO INS CO 3.3% 15% 2 $ 4,076,990
SHELTER INS GRP 1.4% 30% 2 $ 3,491,034
AMTRUST NGH GRP 2.4% 15% 1 $ 1,260,381
METROPOLITAN GRP 0.8% 15% 2 $ 1,031,830
ORPHEUS GRP 1.1% 10% 2 $ 929,520
AUTO CLUB ENTERPRISES INS GRP (AAA) 0.5% 20% 2 $ 848,445
KEMPER CORP GRP 0.7% 15% 2 $ 842,637
HARTFORD FIRE & CAS GRP 0.6% 15% 2 $ 673,438
THE HANOVER INS GRP 0.4% 15% 2 $ 516,007
HORACE MANN GRP 0.4% 15% 2 $ 506,248
FARMERS INS GRP 0.1% 25% 2 $ 298,775
AMERICAN FAMILY INS GRP 0.3% $50 5,919** $ 295,950
CHUBB LTD GRP 0.1% 6% 12 $ 186,195
ROOT INS CO 0.3% 10% 2 $ 254,725
AMICA MUT GRP 0.1% 20% 2 $ 163,389
PURE COMPANIES GRP 0.1% 15% 2 $ 159,441
TRAVELERS GRP 0.0% 15% 3 $ 47,861
PHARMACISTS MUT INS CO 0.0% $25 570** $ 14,250
MIDVALE IND CO 0.0% 15% 3 $ 2,047
BROTHERHOOD MUTUAL INS CO 0.0% 15% 2 $ -
CLEARCOVER INS CO 0.0% 15% 1 $ -
Total Proposed Refunds 97.0% $ 202,838,301
** These insurers are offering a flat payment per vehicle.
