After months of price decreases, insurers begin to increase their rates

Since last summer, insurers have been reducing premium prices and offering credits as vehicle usage changed and overall risk dropped.

However, the tread has started to change as driving levels return closer to normal. Even though vehicle usage may still differ from the norms before the pandemic, insurers believe that the time is right to re-evaluate premium pricing. State Farm, the largest insurer in the United States, has filled for price increases in several states, including: Arkansas, Connecticut, Georgia, Louisiana, Maine, Michigan, Pennsylvania, Virginia, and West Virginia.

As driving level begin to return to pre-pandemic levels, insurers, including State Farm, begin price increases

State Farm in Louisiana, had seen a near 10% price reduction in 2020 with many customer even receiving credits. State Farm has increased rates for new and renewing customers by 4.3% as of earlier this month.

The rate increases for all 9 states were all filled in late November, Louisiana approved it’s rate increase shortly thereafter. Rate increases in the remaining states vary between 3.2% and 4.2% and are imminent.

Read about the State Farm premium rate filings https://www.insurancebusinessmag.com/us/news/breaking-news/state-farm-hikes-premiums-240089.aspx