State Farm Auto Rates Drop, Home Rates Rise in Louisiana

(KNGT-FM) - We can all agree on one thing: insurance rates are absolutely crazy these days. One month, it feels like you’re paying a fair price, and the next, your bill jumps so high it makes your head spin.

Well, Louisiana residents should get ready... It looks like changes are coming to some insurance plans in Louisiana, but it isn't all bad news. We've got everything you need to know...

As an adult, the little things in life can feel like big wins. One of those times is when your insurance bill goes down. A few weeks ago, I wanted to throw a party when I found out my auto insurance dropped by over $100 per month.

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Changes Coming To State Farm Auto/Home Policies In Louisiana

If you have State Farm, policies might be changing in 2026 for Louisiana residents.

Let's start with the good news... Starting January 1, 2026, State Farm will lower auto (car) insurance rates by an average of 5.9% for many people in Louisiana. This change was approved by Louisiana’s Insurance Commissioner Tim Temple. More than 1 million drivers who have State Farm auto insurance could pay less for their car coverage next year.

Now for the bad news... For people who have homeowners insurance with State Farm, the news isn't as good. State Farm also got approval to raise homeowner insurance rates by about 9.7%. This change affects more than 300,000 people who have home insurance with the company.

Why Are Auto Insurance Rates Lowering, But Home Insurance Raising?

FOR AUTO INSURANCE: State Farm says there have been fewer claims for car damage, which means fewer people are asking the company to pay for repairs after accidents. Because of that, the company can charge less.

FOR HOME INSURANCE: State Farm uses special computer models that help it guess how much storms like hurricanes might cost in the future. Those models show higher risks in Louisiana, so the company says it needs to charge more to make sure it has enough money to pay claims later.

The auto rate decrease will begin for new and renewing policies on January 1, 2026. The homeowner rate change has already started for new policies and will apply to renewing policies on December 15, 2025.