Is State Farm’s Louisiana Rate Hike The First Of Many?
Earlier this week Louisiana State Insurance Commissioner Jim Donelon had the task of telling nearly one third of all Louisiana drivers that the price of their insurance was going up.
And by "going up", we mean, way up. A substantial rate increase is in the immediate future for 29% of all motorists in Louisiana who have State Farm Insurance coverage.
Speaking with the Louisiana Radio Network, Donelon said, “A rate increase of 17.3% for the million-plus policyholders in our state. This is being largely driven by collision and comprehensive coverage, not liability.”
Donelon explained the rate increase from State Farm is largely due to the increase to auto repair costs. “An increased cost in labor for repairs, and an increased cost in parts. It is being driven by inflation, by supply chain problems”.
With State Farm being the largest auto insurance provider to the state, they are obviously the first to feel the effects of these price increases, but they certainly aren't the only insurance company forced to pay the higher prices, so when Commissioner Donelon was asked if he believes other auto insurers will also increase their premiums, his answer wasn't surprising. "Not at the moment but I anticipate that will be the case.” said Donelon.
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Gallery Credit: Gary McCoy