Temple Highlights Recent Auto Insurance Decreases Driven By A Reduction In Accident Frequency

The following information was released by the Louisiana Department of Insurance:

Commissioner Tim Temple is providing an update on trends in Louisianas auto insurance market through mid-2025, including several auto insurance rate decreases that are primarily driven by reductions in accident frequency.

As cost drivers in the market go down, losses go down with them, and businesses are incentivized to compete for customers through lower pricing, Commissioner Temple said. While it will take time for this years 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.

Since Jan. 1, 2025, auto insurers have filed over 20 rate decreases in the Louisiana market. Of those, 14 were for a decrease of more than 1% (13 private passenger auto filings and one commercial auto filing). The insurers generally cited reductions in accident frequency as the primary reason for the decreases.

In this years session, Commissioner Temple collaborated with legislators to develop and pass legal reform aimed at strengthening the auto insurance market by reducing excessive lawsuits and inflated bodily injury claims, all while continuing to focus on improving the property insurance market.

Our focus on improving our regulatory and legal environments while ensuring rates are actuarially justified will promote competition and ultimately stabilize auto insurance premiums for Louisiana drivers, Commissioner Temple said. As weve 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.

Private Passenger Auto Market Trends

In Louisianas private passenger auto market, the statewide average market impact for approved rate changes for 2024 was +2.2%. This is a sharp decrease compared to 2023, which was +15.3%, and 2022, which was +10.8%. Through July 2025, the average market impact is a rate decrease of 2.3%.

Since 2022, the number of requested rate increases in the private passenger auto market is trending down, while the number of requested decreases is trending up. In 2022, there were 70 requests for increases and three for decreases. In 2023, there were 76 requests for increases and two for decreases. In 2024, there was a significant reduction in the number of requests for increases with 49, and an uptick in the number of requests for decreases with nine. Through July 2025, there were 13 requests for increases and 19 for decreases.

Commercial Auto Market Trends

In the commercial auto market, the statewide average market impact for approved rate changes for 2024 was +8.5%. This is an increase compared to 2023, which was +6.9%, and 2022, which was +4.1%. Through July 2025, the average market impact is a rate increase of 4.9%.

Since 2022, the number of requested rate increases in the commercial auto market is trending up, while the number of requested decreases has remained steady. In 2022, there were 73 requests for increases and three for decreases. In 2023, there were 85 requests for increases and two for decreases. In 2024, there were 95 requests for increases and four for decreases. Through July 2025, there were 63 requests for increases and one for a decrease.

About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the states insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders.

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