State Farm is Louisiana’s largest auto insurer, covering about one in three vehicles. The company said it will increase auto premiums for liability, collision and comprehensive coverage. Comprehensive covers losses from theft, storm damage, fire, vandalism and windshield damage.
The Advocate reports State Farm’s auto rates will rise an average of 3.7 percent statewide.
The auto rate increase will generate $40.4 million annually from State Farm’s 1 million customers, which averages out to about $40 per customer. However, rates and increases will vary depending on a number of factors, including repair costs, where a person lives, his coverage and the discounts for which he qualifies.
For example, New Orleans customers will see their rates rise an average of 5.7 percent, while in Lafayette, rates will rise an average of 2.5 percent. In West Baton Rouge Parish, rates will increase an average of 2.5 percent.
The company’s last automobile rate increase, an average of 3.5 percent statewide, took effect in February.
The latest rate increases start Dec. 8 and, for existing customers, take effect when they renew their policies.
Auto insurance rates in Louisiana are, and have been, among the highest in the United States.
The highest rates in Louisiana are found in Orleans, St. Bernard, Plaquemines and Jefferson parishes. Rates on the West Bank will rise an average of 5.2 percent, according to State Farm, and 5 percent in the Metairie area.
Insurance Commissioner Jim Donelon has said Orleans motorists paid 40 percent more for auto coverage than the average statewide.