Progressive, Farm Bureau Drop Auto Rates
Progressive and Louisiana Farm Bureau are dropping their auto insurance rates this year following a rate decrease last year from the state’s largest insurer, State Farm. Insurance Commissioner Jim Donelon says the three insurers combined account for just over 50 percent of all Louisiana auto policies.
“State Farm lowered their rates this year 7.7 percent, Progressive 2.2, and now Louisiana Farm Bureau 4.4 percent.”
State Farm owns a third of the state’s policies at a million drivers, Farm Bureau has 220,000 policies, and Progressive owns 175,000.
This comes after a failed attempt to pass legislation in the legislative session that proponents say would have spurred further rate decreases. Donelon says part of the reason for the cuts appears to be a lowered cost of business due to…
“The national distracted driving that was driving rates up across America, while simultaneously killing motorists in record numbers, has reached it’s peak.”
The Insurance Commissioner says the rest of the decreases can be chalked up to aggressive moves by insurers to try to undercut the competition for new policies…
“I dare say that we will see further decreases from the rest of the market as they respond to this competition coming from these three major, top six writers.”