State Farm Approved for Louisiana Auto Rate Decrease and Homeowners Increase

Louisiana's Insurance Commissioner Tim Temple has approved State Farm's request for a significant rate adjustment affecting both personal auto and homeowners insurance policies.

The largest personal auto insurer in Louisiana, State Farm, will decrease average auto insurance rates by 5.9%, impacting over 1,066,000 policyholders. This reduction, effective January 1, 2026, is primarily due to a decrease in the frequency of physical damage claims, signaling a shift in loss experience for insurers in the state.

Conversely, State Farm secured approval for a 9.7% average rate increase on homeowners insurance, affecting more than 300,000 policyholders. This increase, effective immediately for new policies and beginning December 15, 2025, for renewals, reflects updated hurricane modeling projecting higher future losses as well as increased non-catastrophe claims. State Farm holds approximately 20% of the Louisiana homeowners market, making this adjustment impactful.

Commissioner Temple highlighted the connection between legal reforms and rate stability in auto insurance, suggesting current low claim frequency is not guaranteed without continued efforts addressing longstanding systemic issues. Additionally, he emphasized the broader challenge of homeowners insurance affordability in Louisiana, linking it to both market improvements and resilience initiatives.

Efforts like the Louisiana Fortify Homes Program and the Coastal Protection and Restoration Authority’s mitigation projects play a critical role in supporting stronger building codes and community resilience, which are seen as foundational strategies to manage future losses and insurance costs. These mitigation and regulatory actions underscore the intertwined nature of insurance rates, risk management, and state policy.

Policyholders and industry stakeholders can access detailed rate filing information through the Louisiana Department of Insurance's new online rate filing search tool, enhancing transparency in rate changes and facilitating informed decision-making. State Farm’s dual approach to auto and homeowners insurance rate adjustments reflects broader market dynamics and regulatory oversight shaping Louisiana's insurance landscape.