BATON ROUGE, La. — Louisiana’s insurance market showed early signs of stabilization in 2025, with overall rates declining slightly after several years of sustained increases, according to new market impact data from the Louisiana Department of Insurance.
Across all lines combined, statewide insurance rates decreased by an average of 0.4 percent in 2025. The shift follows consecutive annual increases from 2021 through 2024, a period marked by significant premium growth across most coverage categories.
Private passenger auto insurance drove much of the improvement. After multiple years of rate hikes, including double-digit increases in 2022 and 2023, private passenger auto premiums declined by an average of 5.8 percent in 2025. The reduction represents a statewide premium decrease of more than $340 million compared with the prior year. Overall, private passenger auto policyholders are paying approximately $345 million less as a result of rate filings approved in 2025.
“After several challenging years for Louisiana drivers, the 2025 data show meaningful signs of stabilization in the private passenger auto insurance market,” said Commissioner Temple. “We have much more work to do when it comes to making auto insurance more affordable in the long term, especially on the commercial auto side where rates are still extremely high.”
Department data indicate the improvement in auto premiums is largely tied to a reduction in accident frequency.
Homeowners insurance rates continued to increase in 2025, but at a slower pace than in prior years. Total homeowners premiums paid in Louisiana are rising by approximately $135 million for filings approved this year. However, 2025 marked the first year since 2020 in which more than three rate decreases were filed by homeowners insurers, with nine decreases submitted.
Insurers are filing more rate decreases and fewer increases than in recent years, according to the department.
“Most of the reductions we’re seeing in the homeowners insurance market have been concentrated among smaller regional insurers that are experiencing reduced prices for their reinsurance coverage,” Temple said. “I am not satisfied with where rates are today and expect the reforms we’ve made in recent years to reduce costs for all insurers, but for now I encourage policyholders to shop their homeowners policy with insurers large and small to make sure you’re benefitting from the reductions we’ve seen in the market. My priority for 2026 is to continue improving the insurance market by protecting consumers and increasing affordability and long-term availability across the state.”
Officials noted that rate changes reflect statewide averages and individual premiums will vary based on risk factors.
Consumers can review property and auto rate filings through the department’s online rate filing search tool. The Louisiana Department of Insurance said it continues efforts to improve market competition while enforcing regulations designed to maintain stability and protect policyholders.