Louisiana’s approved private passenger auto insurance rates dropped 2.3%, according to Insurance Commissioner Tim Temple. The decline follows a fall in accident frequency.
By contrast, 2024 brought a 2.2% average rate increase, while 2023 saw a sharper 15.3% jump, data from the Louisiana Department of Insurance shows.
Commercial auto premiums are still climbing but at a slower pace. Rates rose an average of 4.9% through July, compared with 8.5% in 2024 and 6.9% in 2023 (see U.S. Auto Liability Insurers).
Insurers have filed more than 20 rate reductions in Louisiana this year, including 14 requests of over 1%. Carriers cite fewer accidents as the main driver behind the filings.
Temple said falling cost pressures reduce losses, which pushes companies to compete on pricing. He added that recent legal and regulatory changes should accelerate competition and stabilize the market.
As we’ve just seen in Florida, where the top five auto insurers have filed for rate decreases in 2025 after beginning to focus on reform in 2022, it can take a year or two of consistent reform to drive down rates.
Insurance Commissioner Tim Temple
Gov. Jeff Landry signed legislation in May that reshaped insurance rules, including how courts handle cases involving uninsured and at-fault drivers. The law also updated the process for rate approvals.
Temple pointed to Florida as an example of reform in action, according to US Auto Insurance Rates by States. There, the state’s top five auto insurers, which cover 78% of the market, filed for rate decreases this year.
Their combined filings average a 6.5% reduction, with one insurer seeking an 11.5% cut. Florida regulators credit multi-year legislative reforms for driving costs lower.
Despite signing major tort reforms, Landry vetoed a bill aimed at overhauling bad-faith rules for insurers. Temple criticized the move, saying the measure would have improved balance in the legal system and lowered business costs for carriers.
