State Farm Cutting Auto Rates but Raising Homeowner Rates in Louisiana

BATON ROUGE, La. (KPEL-FM) - If you have State Farm for insurance you may have some good news coming your way. Or, there's an equal chance for bad news.

The company has been approved by Louisiana Insurance Commissioner Tim Temple for rate changes on auto and homeowners' insurance.

Get our free mobile app

Auto Rate Decrease Approved for 2026

Temple approved State Farm's request for a 5.9% average rate decrease for more than 1,066,000 personal auto insurance policy holders. However, he also approved a 9.7% average increase on more than 300,000 homeowner's policyholders.

Those changes will take place on January 1, 2026.

READ MORE: Local Celebrities That Could Easily Be The Next Governor of Louisiana

Homeowner Premiums Set to Rise

This will affect a lot of Louisianians. According to data from the State Insurance Office, State Farm is the largest auto insurance provider in Louisiana. According to the Louisiana Office of Insurance, the company writes about 30% of the market.

State Farm said the decrease is primarily due to a reduction in frequency of physical damage claims.

How Many Louisiana Homeowner Customers Are Affected?

State Farm is also the largest homeowner's insurer in Louisiana and writes approximately 20% of the market. If you are a homeowner's policyholder, expect these changes sooner as State Farm says the existing policy changes will go into effect on December 15, 2025.

Why State Farm Is Increasing Rates

Why the increase? State Farm has indicated it is due to their hurricane modeling, which projects higher future losses in Louisiana, along with increased non-catastrophe loss experience.

These upcoming rate changes are statewide. The basis for each policyholder's rate change will be based on their individual risk.