Louisiana News

Insurance department: Louisiana drivers to save $187 million amid COVID-19 pandemic

(The Center Square) – Louisiana drivers will benefit from more than $187 million in automobile insurance rebates and rate reductions, the state Department of Insurance says.
Insurers will return about $10.5 billion to their customers nationwide, according to an Insurance Information Institute estimate. The III counted more than $8 billion in announced reductions and refunds as of April 13 then estimated the additional amount that could be forthcoming if other insurers followed suit.
The companies offering rebates or reductions in Louisiana control about 92 percent of the state’s market, the state insurance department says. The list includes insurers of private passenger vehicles that have announced or provided the state insurance department with details of a rebate or reduction program as of Wednesday afternoon, the department says.
“This list includes 13 of the top 20 auto insurers doing business in Louisiana and it is my hope that the other seven auto insurers will follow suit in this time of crisis for their policyholders brought on by the ongoing COVID-19 pandemic,” Louisiana Insurance Commissioner Jim Donelon said.
Because many drivers mostly have been staying home, they’re traveling fewer miles, leading to fewer accidents. Auto insurers say they are sharing their savings with consumers. Savings in Louisiana range from 15 percent to 30 percent, usually for two months, though one company is offering a flat $50 rebate.
Louisiana’s auto insurance rates are among the highest in the country. Many lawmakers and business advocates blame the state’s legal climate, though skeptics say there is no proven link between tort reform, which often limits citizens’ access to the courts and the amounts plaintiffs can receive, and the cost of auto insurance.
Here is the list of companies providing rebates and discounts in Louisiana so far, according to the state insurance department:
Group/Company2019 Written Premium2019 Market ShareCOVID-19 Related Return Premium# Months Return PremiumProjected Return PremiumsSTATE FARM GRP$ 1,442,012,58029.5%25%2.37$ 71,099,231PROGRESSIVE GRP$ 803,097,94416.4%20%2$ 26,769,931BERKSHIRE HATHAWAY (GEICO)$ 571,941,64011.7%15%6$ 42,895,623ALLSTATE INS GRP$ 540,137,65511.1%15%2$ 13,503,441USAA GRP$ 294,072,2696.0%20%2$ 9,802,409FARM BUREAU GRP$ 262,659,5155.4%15%2$ 6,566,488LIBERTY MUT GRP$ 197,963,5544.1%15%2$ 4,949,089GOAUTO INS CO$ 163,079,5833.3%15%2$ 4,076,990SHELTER INS GRP$ 69,820,6821.4%30%2$ 3,491,034METROPOLITAN GRP$ 41,273,1850.8%15%2$ 1,031,830KEMPER CORP GRP$ 33,705,4620.7%15%2$ 842,637HARTFORD GRP$ 26,937,5390.6%15%2$ 673,438HANOVER INS GRP$ 20,640,2800.4%15%2$ 516,007AMERICAN FAMILY GRP$ 14,207,6870.3%$50.00**$ 256,500FARMERS INS GRP$ 7,170,6090.1%25%2$ 298,775AMICA MUT GRP$ 4,901,6550.1%20%2$ 163,389CHUBB LTD GRP$ 4,819,4460.1%35%2$ 281,134TRAVELERS GRP$ 1,276,2890.0%15%2$ 31,907TOTAL ALL COMPANIES$ 4,458,444,38992.1% $ 187,249,854
Show More
Back to top button