(The Center Square) − Louisiana Insurance Commissioner Tim Temple on Friday announced that Louisiana Farm Bureau Casualty Insurance Company will reduce auto insurance rates by 11.8% for more than 80,000 policyholders statewide beginning Jan. 1.
The reduction marks one of the largest single decreases in recent years, coming as insurers report fewer accidents and cite growing confidence in Louisiana’s legal reforms.
“Louisiana Farm Bureau cited two reasons for this significant decrease,” Temple said. “First, a decrease in accident frequency and severity. Second, while Louisiana’s recent legal reforms have not yet taken full effect, Farm Bureau said our efforts gave them confidence that Louisiana is committed to improving the market for insurers and consumers.”
Alongside the auto rate cut, Louisiana Farm Bureau Mutual Insurance Company has notified the Department of Insurance that it is expanding wind and hail coverage for homeowners across the state.
The department said recent changes to Louisiana’s “three-year rule,” which governs how long insurers must remain in the state after writing new policies, have made it possible to offer more property insurance while maintaining balanced risk management.
Temple emphasized that the changes reflect momentum in the state’s insurance markets, but cautioned that continued action will be needed to secure long-term gains.
“While it’s too early to see how this year’s legal reform will affect auto insurance prices, we do know that reform works,” Temple said. “I’m glad to see Louisiana Farm Bureau lean into our reform efforts, and I look forward to working with other companies to make sure they understand the extent of what we’ve done in Louisiana. Now is not the time to sit back and watch what happens next – we must be proactive about continually improving our regulatory and legal environment next session and in the years that follow.”
Friday’s announcement follows a string of auto rate decreases filed in 2025. Since Jan. 1, insurers have submitted more than 20 auto insurance rate reductions in Louisiana, including 14 for more than 1%.
The Department of Insurance has noted that most were driven by declines in accident frequency throughout 2024 and early 2025.
In the private passenger auto market, the statewide average impact of approved rate changes in 2024 was a 2.2% increase – far lower than the double-digit hikes in 2022 and 2023. Through July 2025, rates are trending down, with an average statewide decrease of 2.3%.
The commercial auto market, meanwhile, continues to face upward pressure. Approved rate changes averaged an 8.5% increase in 2024 and are averaging 4.9% through mid-2025.
“Our focus on improving our regulatory and legal environments while ensuring rates are actuarially justified will promote competition and ultimately stabilize auto insurance premiums for Louisiana drivers,” Temple said.
