Highlights

• Nearly 12,000 Louisiana Allstate policyholders will see premium decreases starting December 2025
• Encompass Insurance approved for 15% rate decrease affecting 1,516 policyholders beginning December 8, 2025
• Allstate North American Insurance Company approved for 7.6% rate decrease affecting 10,746 policyholders starting January 8, 2026
• More than 20 auto insurers have filed rate decreases in Louisiana in 2025, including GEICO, State Farm, Progressive, and Louisiana Farm Bureau
• State officials credit tort reform efforts and reduced accident frequency for driving down insurance costs

Louisiana Drivers to See Auto Insurance Rate Decreases from Allstate Companies

Two Allstate subsidiaries slash rates as Louisiana’s insurance market continues recovery from years of double-digit increases.

LAFAYETTE, La. (KPEL News) — Louisiana drivers with Allstate and Encompass policies will see lower auto insurance premiums after state regulators approved rate decreases for nearly 12,000 policyholders across Louisiana.

Insurance Commissioner Tim Temple announced last week that Encompass Insurance Company of America’s National General program got approval for a 15% rate decrease affecting 1,516 personal auto policyholders. That reduction takes effect December 8, 2025. Temple also approved Allstate North American Insurance Company’s filing for a 7.6% rate decrease for its 10,746 Louisiana policyholders, starting January 8, 2026.

Get our free mobile app

The approvals are the latest relief for Louisiana drivers who’ve paid some of the nation’s highest auto insurance costs. Rate changes are statewide averages, so individual policyholders will see different adjustments based on their location, driving history, and vehicle type.

What Louisiana Families Need to Know About Rate Decreases

These Allstate subsidiary reductions help thousands of Louisiana households. Lower insurance costs mean families have more money for other expenses and can better afford to keep vehicles on the road.

An Allstate representative told state officials that Louisiana’s recent tort reform efforts “reinforce confidence” that the state is moving toward a healthier market for both insurers and consumers. The representative said the carrier is “already seeing signs of increased competition for our business in the state.”

Louisiana has ranked among the most expensive states for auto insurance, often in the top three nationally. The average full coverage auto insurance policy in Louisiana runs near $3,953 annually, second only to New York. Louisiana residents pay about $500 more each year than the national average despite having lower incomes than many other states.

Louisiana’s Insurance Reform Efforts Drive Market Improvements

Louisiana lawmakers passed auto insurance reform bills in 2024 to bring more business to the state for both personal and commercial auto coverage. The Legislature made more legal reform efforts in 2025, passing bills that changed the state’s comparative fault law and collateral source rule.

In May 2025, Governor Jeff Landry signed auto insurance reforms that adjusted rate approval processes and addressed litigation issues. The reforms raised the recovery threshold for uninsured drivers from $15,000 to $100,000 for bodily injury and from $25,000 to $100,000 for property damage under Louisiana’s updated “No Pay, No Play” statute.

Temple noted that Louisiana averaged about 64,000 bodily injury claims each year over the past decade. “When we file those bodily injury claims, we litigate at three times the national average,” Temple said. “Those are the cost drivers for the state of Louisiana.”

The reforms also gave Temple more authority to reject excessive rate hikes and improved transparency in the insurance industry. These measures aim to provide stronger oversight and ensure insurance companies operate fairly while protecting consumers from unjustified premium increases.

More Insurers Join Rate Decrease Trend in 2025

The Allstate announcements follow a pattern of rate reductions across Louisiana’s auto insurance market in 2025. More than 20 auto insurers have filed rate decreases since January, with 14 requesting reductions greater than 1%.

Louisiana Farm Bureau Casualty Insurance Company got approval for an 11.8% rate decrease affecting over 80,000 policyholders, taking effect January 1, 2026. Major carriers, including GEICO, State Farm, Progressive, Liberty Mutual affiliates, and others, filed for rate reductions, mostly citing decreased accident frequency.

Through the first seven months of 2025, the average market impact for private passenger auto insurance was a rate decrease of 2.3%. This reverses years of steep increases—2.2% in 2024, 15.3% in 2023, and 10.8% in 2022.

“As cost drivers in the market go down, losses go down with them, and businesses are incentivized to compete for customers through lower pricing,” Temple said. He credited recent regulatory and legal reforms in Louisiana for encouraging competition and market stability.

Commercial auto insurance rate growth slowed to 4.9% in 2025 from 8.5% in 2024 and 6.9% in 2023, though commercial rates keep increasing while personal auto rates decline.

What Happens Next for Louisiana Auto Insurance

Temple said that while these rate decreases are positive, Louisiana still has substantial work ahead to achieve truly affordable auto insurance for all residents. Affordability of auto insurance, particularly on the commercial side, will likely be a major issue when lawmakers meet for regular session in March 2026.

“This is more good news for Louisiana drivers, but we have much more work to do,” Temple said. “We must be proactive and continue improving our regulatory and legal environment to ensure more Louisiana drivers see the results of our reform efforts.”

Temple pointed to Florida as an example of how reform efforts can drive down rates over time. After Florida started focusing on insurance reform in 2022, the state’s top five auto insurers filed for rate decreases in 2025, with combined filings averaging a 6.5% reduction. Florida regulators credit multi-year legislative reforms for driving costs lower.

“While it will take time for this year’s legal reforms to take effect and begin making a difference, it is a positive sign that insurers saw fewer accidents in 2024 and early 2025,” Temple noted.

Louisiana’s top private auto insurers in 2024 by premiums were State Farm (nearly 30% market share), Progressive (23.5%), Allstate (12.4%), Berkshire Hathaway (9%), and USAA (6.2%). The rate decreases from Allstate subsidiaries affect only specific programs within the company’s Louisiana operations, not all Allstate policyholders in the state.

Consumers can review all property and auto rate filings online using the Louisiana Department of Insurance’s rate filing search tool. The LDI also provides consumer assistance through its LDIConnect mobile app or by calling 800-259-5300.

Get our free mobile app