Louisiana’s average private auto insurance rates declined 2.3% through July 2025, driven by a reduction in accident frequency. 

The decline follows years of rate increases, including 2.2% in 2024 and 15.3% in 2023, the Louisiana Department of Insurance (LDI) reported.

Commercial auto insurance rate growth also slowed to 4.9% in 2025 from 8.5% in 2024 and 6.9% in 2023. Since January, Louisiana insurers have filed over 20 rate decrease requests; 14 requested reductions greater than 1%, predominantly citing fewer accidents as the reason.

“As cost drivers in the market go down, losses go down with them, and businesses are incentivized to compete for customers through lower pricing,” Insurance Commissioner Tim Temple said. He credited recent regulatory and legal reforms enacted in Louisiana for exercising competition and market stability.

In May, Gov, Jeff Landry signed landmark auto insurance reforms, adjusting rate approval processes and curbing litigation abuses, which Temple says will further stabilize rates. 

“As we’ve just seen in Florida, where the top five auto insurers have filed for rate decreases in 2025 after beginning to focus on reform in 2022, it can take a year or two of consistent reform to drive down rates,” Temple said.

However, Landry vetoed a bill on bad faith complaint reforms that Temple supported, describing it as a missed opportunity to reduce insurer costs.

Louisiana’s top private auto insurers in 2024 by premiums were State Farm (nearly 30%), Progressive (23.5%), Allstate (12.4%), Berkshire Hathaway (9%), and USAA (6.2%).

This outlook complements improvements in Louisiana’s property insurance market noted earlier in 2025, where reforms have begun to ease a years-long insurance crisis by attracting new insurers and slowing rate increases.