Insurance Commissioner Tim Temple has approved an 11.8% average rate reduction for auto insurance policies issued by Louisiana Farm Bureau Casualty Insurance Company, benefiting over 80,000 policyholders across the state. This decrease will take effect on January 1, 2026. Since the reduction is a statewide average, individual savings may vary depending on each policyholder's specific risk factors.
Commissioner Temple explained that Louisiana Farm Bureau attributed the rate cut to two key factors: a drop in both the frequency and severity of car accidents, and increased confidence in the state’s insurance environment due to recent legal reforms. Although the full impact of those reforms has yet to materialize, Farm Bureau noted that the legislative direction gives them optimism about the future of Louisiana’s insurance market.
In addition, Louisiana Farm Bureau Mutual Insurance Company has informed the Louisiana Department of Insurance (LDI) that it has expanded its offering of wind and hail coverage for homeowners statewide. The company cited recent adjustments to the state’s “3-year rule” as a reason for its decision, noting that the changes make it more feasible to grow its homeowners insurance portfolio while responsibly managing its risk.
Commissioner Temple emphasized the importance of continuing efforts to strengthen the state’s insurance and legal landscape. “We know legal reform works,” he said. “It’s encouraging to see companies like Louisiana Farm Bureau respond positively. But this is only the beginning—we must remain proactive in making further improvements in future legislative sessions.”
About the Louisiana Department of Insurance (LDI):
LDI promotes competition within the state’s insurance market and provides guidance and support to help consumers make informed decisions. The department also ensures that insurers follow the rules designed to protect policyholders and maintain a fair, stable marketplace. Consumers can reach LDI through the LDIConnect app, by calling 800-259-5300, or visiting www.ldi.la.gov.
