(WAFB) - State Farm, the largest insurer for vehicles in Louisiana, is planning to cut rates this summer. This comes after years of increases, The Advocate reported.
The company plans to cut rates by about 3 percent this summer for nearly a million customers. Spokeswoman Felicia Van Frank, said the decrease will save the average customer about $48 per year.
This will be the first time State Farm has cut rates since 2012. The latest rate increase of 9.8 percent went into effect in February of this year.
Car insurance rates have been climbing all over the country, and that's been particularly noticeable in Louisiana, where car insurance rates are among the most costly nationwide.
Over the past two years, car insurance rates in Louisiana have increased by about 9 percent per year, said Insurance Commissioner Jim Donelon. The new, cheaper rates are expected to take effect in July for new customers and at the time of renewal for existing customers, The Advocate reported.
Last year, State Farm's rates went up by an average of a staggering 13.5 percent.