BATON ROUGE, La. — Insurance Commissioner Tim Temple has approved State Farm’s request for a 5.9% average rate decrease on its personal auto insurance policies, effective Jan. 1, 2026. The change affects over 1,066,000 policyholders, with individual rate adjustments varying based on personal risk factors. State Farm is the largest personal auto insurer in Louisiana, covering roughly 30% of the market.
State Farm cited a reduction in the frequency of physical damage claims as the primary reason for the decrease.
“I’m glad to see positive movement on auto rates in Louisiana for the first time in years,” said Commissioner Temple. “Because fewer accidents are contributing to these lower losses for insurers, we should not necessarily expect this level of decrease in future years without continued legal reform addressing the underlying causes of high rates.”
In addition, State Farm was approved for a 9.7% average increase on its homeowners insurance policies. The change applies immediately for new business and takes effect Dec. 15, 2025, for renewals, affecting over 300,000 policyholders. Individual adjustments will vary. The increase reflects updated hurricane modeling and higher projected non-catastrophe losses.
“Ensuring homeowners insurance affordability in Louisiana requires continued improvements in the insurance marketplace and stronger, more resilient homes and communities,” said Commissioner Temple. “Programs like Louisiana Fortify Homes and mitigation efforts by the Coastal Protection and Restoration Authority, along with stricter building codes, are key to these efforts.”
Consumers can review all property and auto rate filings using the Louisiana Department of Insurance’s user-friendly rate filing search tool online.
About the Louisiana Department of Insurance
The Louisiana Department of Insurance promotes competition, ensures a fair marketplace, and helps residents make informed decisions about insurance. For assistance, download the LDIConnect mobile app, call 800-259-5300, or visit www.ldi.la.gov.