Five insurers with the highest hikes
Five insurers with the highest hikes
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Five insurers with the highest hikes
Car insurance rates are going up in Louisiana, with some drivers reporting hikes of up to 35% compared to the same coverage last year. Rates had remained relatively flat in recent years, with a 1.8% average increase in 2021 a 4.1% decrease in 2020, and a 1.4% decrease in 2019, but Louisiana Insurance Commissioner Jim Donelon said those discounts will end this year for most customers.
Donelon said as drivers emerged from lockdown the number of car accidents went up too, which started to affect insurance rates.
“Due to increased driving and mileage and accidents, but also due to the spike in inflation we’re experiencing the cost of new cars is at the max,” Donelon said.
At the same time, floods, wildfires and hurricanes led to a spike in claims across the globe, while car prices and auto thefts soared.
“It (crime) affects it significantly because those cars are typically higher dollar vehicles that are attractive to carjackers and thieves and that results in a significant claim being filed,” Donelon said. “Their claim cannot be used against them in the pricing of their own coverage, but it can be used on the overall statewide.”
According to the Department of Insurance, Louisiana insurers with the highest average rate increases approved in 2021 include:
Geico (also known as Berkshire Hathaway Group) +9.6%
The General (also known as American Family Insurance Group) +9.1%
Shelter Insurance Group +6.9%
GoAuto Insurance Company +6.7%
Liberty Mutual Group (also known as Safeco) +4.6%
Donelon said drivers should shop around and can often save some money by comparing competitors’ rates.
According to Louisiana’s Department of Insurance, car insurers with the highest rate decreases approved in 2021 include:
AAA (also known as Auto Club Enterprises Insurance Group) – 1%
Old American Indemnity Company (also known as Orpheus Group) – 5.6%
Safeway Insurance Group – 5.2%
USAA (also known as United Serv Automobile Association Group) – 4.4%
Allstate and Imperial – 2.9%.
As drivers absorb the rate changes, Donelon said homeowners can also expect to pay more for their insurance. He said home insurance rates increased 6.7% last year and are expected to continue to rise this year.
For tips on ways to lower your insurance rates, click here.
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