Homeowners have already been watching their premiums rise in Louisiana, and now drivers can expect that their auto insurance rates will be rising there as well.
State Farm recently requested a hike of 17 percent in the state, and it now has its approval.
Drivers are starting to wonder how they will be able to afford their auto insurance rates following hikes that have already been applied to their home coverage.
“It’s not nice to be a Louisiana policyholder whether it’s auto or home,” said Dan Burghardt of Dan Burghardt Insurance in a recent media report.
State Farm received the thumbs up for its request to increase premiums by 17.3 percent after having first submitted a request for over 18 percent.
“It all started with COVID, and then lack of supply and demand, and then all of the sudden prices for parts and labor jumped,” explained Burghardt.
Louisiana auto insurance rates are following a trend seen by a number of other states in the US.
According to Burghardt, as each year comes to a close, insurers examine their loss ratio against the premium income to determine if they need to change how much they charge. If they want to raise premiums, they must submit a request for permission through the Department of Insurance.
“No one wants a list of liquidated insurance companies like we just went through,” he explained. “It’s a process. It’s just not wave a wand because you asked for it. They have to go through a number game.”
Louisiana Insurance Commissioner Jim Donelon explained that he gave his approval to State Farm for its request to raise auto insurance rates in the state because of inflation.
“[It’s] driven primarily by the increased cost of repairs to automobiles, and so it’s falling heaviest on folks who have full coverage,” said Donelon.
State Farm isn’t the only insurer to have requested a hike. A number of others have also requested and received permission to charge more for coverage. In fact, one insurer received approval to raise premiums by as much as 38 percent.
FAQ’s About Louisiana Auto Insurance
1. Is auto insurance mandatory in Louisiana?
Yes, auto insurance is mandatory in Louisiana. Every driver must have at least the minimum liability coverage.
2. What is the minimum auto insurance coverage required in Louisiana?
In Louisiana, the minimum auto insurance coverage is 15/30/25. It means $15,000 for bodily injury per person, $30,000 for bodily injury per accident, and $25,000 for property damage per accident.
3. What happens if I drive without auto insurance in Louisiana?
Driving without insurance in Louisiana can lead to fines, suspension of your driver’s license, impoundment of your vehicle, and even jail time in some cases.
4. How does Louisiana auto insurance work in case of an accident?
Louisiana follows an “at-fault” system. This means that the person who is deemed responsible for causing the accident is liable for any damages or injuries that occur.
5. Can I get auto insurance in Louisiana if I have a poor driving record?
Yes, you can still get auto insurance with a poor driving record, but it may be more expensive.
6. How can I lower my auto insurance premiums in Louisiana?
Some strategies to lower your auto insurance premiums include maintaining a clean driving record, bundling insurance policies, taking a defensive driving course, and comparing quotes from different insurance providers.
7. What factors affect auto insurance rates in Louisiana?
Several factors can affect your auto insurance rates in Louisiana, including your age, gender, driving history, the type of vehicle you drive, and where you live.
