If you recall one of the "good things" about this pandemic year of 2020 was that our car insurance rates were lowered. Trust me, in Louisiana having your car insurance rates go down is a big deal. The reasoning behind the rate reduction was the fact that so many of us were not on the roadway during the early stages of the pandemic that a rate reduction seemed quite plausible.

Since many of us how now returned to a more normal driving schedule including commuting to work and driving kids back and forth to school it only makes sense that the temporary reduction in insurance rates would be ending with our return to the roadways.

State Insurance Commissioner Jim Donelon says the rise in rates is directly related to the increased number of traffic accidents and claims filed over the past few months. Donelon said that many Louisiana insurance customers may have already noticed that their rates have returned to pre-pandemic levels.

While Commissioner Donelon was explaining the rise in auto insurance rates he was also quick to point out that your homeowner's insurance rates will likely be on the rise too. No, the homeowner's rates aren't tied to COVID-19 those increases are tied to the very active tropical season the state just experienced.

Donelon says an increase of about 10% is what most homeowners can expect but most of us won't see that increase until later next year when many of us renew our insurance policies ahead of the hurricane season. Donelon suggested one way you could avoid a larger increase in your homeowner's policy is to shop around. But he still cautioned you'll likely be paying a higher premium regardless.

Things to Look Forward to in 2021