Louisiana Auto Insurance Rates Dropping: Really

Louisiana drivers could soon see some relief at renewal time. According to Louisiana Insurance Commissioner Tim Temple, dozens of insurance companies have already filed for rate reductions that could save drivers statewide hundreds of millions of dollars. 

Louisiana Insurance Rate Reductions Already Filed 

Temple recently told KEEL News that more than 30 companies have filed rate decreases for private passenger auto policies. Those filings apply to the types of vehicles most Louisiana residents drive every day. 

Here the Complete Temple Interview HERE

Temple said those decreases will not show up immediately on monthly bills. They take effect when policies renew. 

“That's when you get the new rate,” Temple explained. “It doesn't mean it applies instantaneously. It's a state average.”  

According to Temple, those filings represent about $340 million in potential savings for consumers statewide once the changes fully roll out. 

Why You May Not See the Savings Yet 

One reason some drivers remain skeptical is timing. Insurance rates change at renewal, not in the middle of a policy term. Drivers whose policies have not renewed yet may still be paying older rates. 

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Temple encouraged Louisiana residents to shop around rather than staying with the same insurer for decades. 

“I hear consistently people saying they've been with the same company for 10, 20, even 30 years,” Temple said. “Shop your insurance. Make the companies earn your hard-earned dollars.”  

The Louisiana Department of Insurance maintains a list of companies that have filed decreases. Drivers can view the information on the department's website. 

Homeowners Insurance Still Rising 

While auto rates may begin trending downward, homeowners insurance remains a challenge across Louisiana. Temple said rates are still increasing, although not at the pace seen in recent years. 

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He believes the market may be nearing a peak in price increases. 

“We are peaking at homeowners increases and we should start to see decreases,” Temple said, noting that several companies have already filed smaller reductions.  

Litigation Costs Remain a Key Issue 

Temple also pointed to Louisiana's high level of litigation after accidents as a major factor driving insurance costs. 

“It’s not the number of accidents we get in,” he said. “It's the fact that when we get in an accident, we claim bodily injury and we litigate more than the national averages.” 

As the legislative session begins, lawmakers are expected to debate possible reforms aimed at reducing excessive lawsuits and large court awards tied to accident claims. 

Temple said those discussions could play a role in whether Louisiana insurance rates continue to improve in the coming years.