Louisiana Insurance Commissioner Jim Donelon said he appreciates the way auto insurers have reduced rates for consumers as the coronavirus shutdown has kept drivers off the roads.
“During these unprecedented times, Louisiana’s insurers have stepped up in big ways," Donelon said, two weeks after calling for the voluntary reduction. "Our casualty insurers have returned more than $187 million in premium to consumers through rebates."
Allstate and Geico were the first to announce rate reductions.
Allstate said it would reduce rates by 15% for premiums due in April and May.
Geico matched Allstate’s reduction, “providing a 15% credit to its auto and motorcycle customers as their policies come up for renewal between April 8 and Oct 7,” the Advocate reported. The average savings will be $150 per auto policy and $30 per motorcycle policy.
State Farm provides auto insurance for more than one million Louisiana policyholders, representing 30% of the auto insurance market in the state. In March, Donelon approved a 2.3% decrease in rates for State Farm auto policies. The decrease is effective May 1.
Roszell Gadson, spokesman for State Farm, said his company is committed to helping its customers weather uncertain times.
“We made the decision in early April to return $2 billion in dividends to our mutual auto insurance customers around the country, as we face this unprecedented situation," Gadson said. "The $2 billion dividend announcement is part of a larger 'Good Neighbor Relief' program we’re announcing, that also includes customer payment options, suspension of policy cancellations and neighborhood philanthropic relief."
State Farm’s current 2.3% auto insurance reduction follows approved decreases of 4.5% in 2018 and 6.5% in 2019, for a total of 13.3% over the past 18 months. State Farm auto insurance reductions over the past 18 months have led to other major insurers lowering rates in the private passenger market, Donelon told the Advocate.
GoAuto Insurance promised that all current Louisiana automobile insurance policyholders would see a reduction in monthly premium payments during the shutdown.
Progressive Insurance is giving its Louisiana auto policy holders an automatic 20% credit for their April premium. Active personal policyholders will also receive a 20% credit at the end of May.