More than one million State Fam auto insurance policyholders in Louisiana should see a decrease in premiums in 2026, as Insurance Commissioner Tim Temple approved the carrier’s request for a 5.9% average rate decrease.
State Farm is the largest personal auto insurer in Louisiana, covering approximately 30% of the market. The rate decrease, which goes into effect on Jan. 1, will affect more than 1,066,000 policyholders. Rate changes are statewide averages, so each policyholder’s rate change will vary based on their individual risk.
Auto insurers have filed more than 20 rate decreases in Louisiana in 2025, including Geico, Allstate and Progressive. Temple attributed the rate decreases to lower loss costs and fewer claims being filed.
“When insurance companies have lower losses, that allows them and incentivizes them to have lower premiums the following year,” Temple told Insurance Journal. “I think people are starting to tune in to the fact that losses drive premiums to a large degree.”
One particular event appears to have contributed heavily to the decrease in auto claims in Louisiana.
A January winter storm brought freezing weather to the South, including a snowstorm the likes of which the region hadn’t experienced in more than a century. Some areas of New Orleans received up to 10 inches of snowfall.
“We had an entire week where you didn’t have vehicles on the road,” Temple said. “I think we’re drawing that conclusion similar to what we saw in COVID. When people stopped driving, just the frequency of accidents went down.”
Louisiana is on par with the national average for number of accidents per capita, but the state has twice as many bodily injury claims filed as a result of auto accidents, according to the Louisiana Department of Insurance (LDI). Temple said Louisiana litigates auto accidents at three times the national average
“When you’ve got fewer accidents, it has a much bigger impact in Louisiana than in other states, because of those multipliers,” Temple said.
While State Farm policyholders in Louisiana will see relief on their auto premiums, the carrier is raising homeowners rates.
State Farm was approved for a 9.7% average increase on its over 300,000 homeowners insurance policyholders. The change is in effect now for new business and takes effect Dec. 15 for renewal business.
State Farm attributed the rate increase primarily to its hurricane modeling, LDI said, which projects higher future losses in Louisiana, along with increased non-catastrophe loss experience.
Temple said that addressing the affordability will require “continued commitment to improving the insurance marketplace,” as well as efforts to strengthen the state’s resilience for future storms.
“The Louisiana Fortify Homes Program is foundational to this effort, as is supporting the Coastal Protection and Restoration Authority’s mitigation efforts and embracing stronger—and better-enforced—building codes,” Temple said.
Topics
Trends
Auto
Louisiana
Pricing Trends
Homeowners
State Farm
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