Louisiana Drivers Could See Lower Car Insurance Rates

BATON ROUGE, La. (KPEL-FM) - Some drivers in Louisiana may soon see lower car insurance premiums.

Fewer Crashes Driving Lower Claims

According to Louisiana State Insurance Commissioner Tim Temple, more than 30 insurance companies have filed rate decreases for private passenger auto policies. Temple says the reductions are tied to fewer crashes, which has resulted in fewer insurance claims.

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Temple called the filings a positive sign for Louisiana’s insurance market.

“For the first time in five years, we actually had insurance companies take rate decreases,” Temple said. “That’s a good indication that we’re moving in the right direction.”

Why Drivers May Not See Immediate Savings

However, drivers shouldn’t expect an immediate drop in their bills. Insurance rate changes typically take effect when a policy renews, and only if the customer’s insurer is one of the companies that filed for a decrease.

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“When insurance companies file for rate changes, whether it’s up or down, that doesn’t translate to a change in the individual premium that month or next month,” Temple said. “It’s when you renew your insurance.”

Commissioner Encourages Drivers to Shop Around

Temple also encouraged drivers to shop around when their policies come up for renewal and compare quotes from multiple companies.

“You should always shop your insurance, get multiple quotes, make insurance companies earn your business, and earn your premium dollars,” Temple said.

Other Insurance Costs Still Rising

The rate reductions apply only to private passenger auto insurance policies. Temple noted that commercial insurance rates are not seeing the same trend, and homeowners insurance costs across Louisiana continue to rise for many residents.