Louisiana Auto Insurance Rates Experience Notable Decline

Louisiana Sees Decline in Private Auto Insurance Rates Amid Accident Reduction

Louisiana’s average private auto insurance rates have fallen by 2.3% through July 2025, marking a significant shift in the state’s insurance landscape. This decrease is attributed primarily to a decline in the frequency of accidents, following several years of escalating rates.

The Louisiana Department of Insurance (LDI) noted that the reduction in rates comes after increases of 2.2% in 2024 and 15.3% in 2023. Additionally, commercial auto insurance rate growth has also slowed, now at 4.9% in 2025 compared to 8.5% in 2024 and 6.9% in 2023.

Since January 2025, over 20 rate decrease requests have been submitted by insurers in Louisiana, with 14 seeking reductions of more than 1%. Insurers attribute these adjustments to lower accident rates, which have translated to fewer insurance losses.

Insurance Commissioner Tim Temple highlighted that as costs driving the market decrease, losses experienced by insurers also lessen, fostering competition and lower pricing within the industry.

Regulatory Reforms Contribute to Market Changes

Recent regulatory and legal reforms in Louisiana have been credited with stabilizing and enhancing competition in the insurance market. In May 2025, Governor Jeff Landry enacted significant reforms aimed at adjusting rate approval processes and addressing abuses in litigation.

Temple drew parallels between Louisiana’s reform efforts and similar actions taken in Florida, where leading insurers are also pursuing rate decreases following regulatory adjustments.

Despite these advancements, a setback occurred when a bill addressing bad faith complaint reforms was vetoed by Landry. Temple viewed this as an opportunity missed to lower insurer costs further.

Insurance Rates Comparisons and Claims Challenges

While Louisiana’s average auto insurance rates have seen a decline, the state still ranks as having the second-highest rates in the United States, surpassed only by New York. Currently, average full coverage auto insurance premiums in Louisiana are around $3,953 annually, which is 39% above the national average.

Residents in Louisiana pay approximately $500 more annually for auto insurance than the national average, a burden exacerbated by lower median incomes. The state also reports significantly higher rates of bodily injury claims—triple the national average—and twice the losses, alongside litigation rates that are four times the national norm.

Trends in Private and Commercial Auto Insurance

The average effects of approved rate changes in private passenger auto insurance have varied in recent years, with notable increases of 10.8% in 2022, 15.3% in 2023, and 2.2% in 2024, culminating in the recent decline of 2.3% in 2025 up to July.

In the commercial auto insurance sector, growth has steadily slowed, showing 4.1% increase in 2022, 6.9% in 2023, 8.5% in 2024, and dropping to 4.9% through July 2025. Only one filing in the commercial auto sector has sought a reduction exceeding 1%, which came from GEICO.

Regional Premium Differences

Premium costs also vary significantly across different cities in Louisiana. The cities with the cheapest monthly average premiums include Hornbeck at $192, Many at $194, and Zwolle at $194. Conversely, Arabi tops the list for the highest premiums at $377, followed by Chalmette at $368 and Violet at $365.

Among local insurance providers, the Louisiana Farm Bureau offers the most affordable liability insurance at $39 per month and the cheapest full coverage option at $82 per month.