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State Farm Raising Auto Insurance Rates

Insurance company State Farm will be raising rates for car insurance.

State Farm insures one out of every three vehicles in the state of Louisiana.

State Farms says that car insurance rates will go up by an average of 3.4 percent by the middle of February.  Premiums for liability, collision and comprehensive coverage will all be going up on February 17.

State Farm spokesman Gary Stephenson says the increase will mean that customers will end up paying about 35 dollars more each year for their coverage.

Stephenson says the amount of extra each customer will pay in premium hikes will depend on what kind of insurance coverage that they have.  He says several things factor into costs, including:

  • Type of coverage
  • Individual discounts
  • The kind of vehicle insured
  • The hometown of the driver

Commissioner of Insurance Jim Donelon agreed to the rate increase, according to his spokeswoman.

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