State Farm raises rates in state months after cutting them

State Farm raises rates in state months after cutting them | Insurance Business

State Farm raises rates in state months after cutting them

State Farm, considered the largest vehicle insurer in Louisiana, has received approval to raise its auto insurance rates – just months after it lowered rates in the state.

As of April 05, the company has increased its auto insurance rates by an average of 4.3% for both new and existing customers who are renewing. Months earlier, the insurer slashed Louisiana auto insurance rates by 9.6% and issued credits as part of its relief efforts to consumers affected by the pandemic.

NOLA.com reported that State Farm’s increase amounts to a $53.5 million total, affecting about a million policyholders. Records show that the rate increase was approved by the Louisiana Insurance Commissioner in mid-December.

“We continue to monitor trends to ensure we’re accurately matching price to risk, and to minimize the impact to customers as much as possible. Our data indicates more people are driving and it’s resulting in an increase in auto claims from the levels in the spring of 2020,” a State Farm spokesperson said in a statement.

The representative also told NOLA.com that despite the adjustments, rates still remain below pre-pandemic levels.

Read more: State Farm hikes premiums

This is not the first time State Farm has increased its premiums shortly after rate cuts, nor will Louisiana be the only state that sees rate hikes. Based on rate filings obtained by S&P Global Market Intelligence in December, the insurer filed for increases in the states of Arkansas, Connecticut, Georgia, Maine, Michigan, Pennsylvania, Virginia, and West Virginia.