NEW ORLEANS – Insurance Commissioner Tim Temple has approved Allstate North American Insurance Company’s (ANAIC) filing for a 7.6% rate decrease for its 10,746 personal auto policyholders in Louisiana. The change takes effect on Jan. 8, 2026. Temple also approved Encompass Insurance Company of America’s National General program filing for a 15% decrease, which impacts 1,516 personal auto policyholders and takes effect on Dec. 8, 2025.
“This is more good news for Louisiana drivers, but we have much more work to do,” said Commissioner Temple. “We must be proactive and continue improving our regulatory and legal environment to ensure more Louisiana drivers see the results of our reform efforts.”
Rate changes represent statewide averages, so each policyholder’s rate will vary based on their individual risk factors, including location, driving history and vehicle type. ANAIC and Encompass are both Allstate companies, and these reductions apply only to policyholders of these two specific insurers.
Economic and Market Implications
Rate reductions from Allstate’s subsidiaries could provide modest relief for thousands of Louisiana households. Lower insurance costs can also strengthen consumer spending power and vehicle affordability.
Rate Filing Details
| Company | Rate Change | Affected Policies | Effective Date | Type of Policy |
|---|---|---|---|---|
| Allstate North American Insurance Co. | -7.6% | 10,746 | Jan. 8, 2026 | Personal auto |
| Encompass Insurance Co. of America | -15% | 1,516 | Dec. 8, 2025 | Personal auto (National General program) |
Consumers can review all property and auto rate filings online using the Louisiana Department of Insurance’s new rate filing search tool at www.ldi.la.gov.
Louisiana’s Auto Insurance Landscape
Louisiana has long ranked among the most expensive states for auto insurance, often within the top three nationally. The new rate filings mark a continued effort by the Louisiana Department of Insurance (LDI) to stabilize premiums following years of volatility linked to legal, weather and reinsurance costs.
In July 2024, top lawmakers convened 14 hearings to examine the underlying causes of elevated insurance costs and to understand why claims in Louisiana exceed those in other states. “We don’t have more auto accidents than the national average,” said Insurance Commissioner Tim Temple. “Our vehicles, when they are damaged, do not cost more to repair than they do in other states. When we get into an accident, we file twice the number of bodily injury claims. Twice.”
Temple noted that Louisiana averaged about 64,000 bodily injury claims annually over the past decade. “And when we file those bodily injury claims, we litigate at three times the national average,” he said. “Those are the cost drivers for the state of Louisiana.” According to recent data, Louisiana recorded 66,000 bodily injury claims among 2.4 million licensed drivers, compared with Alabama’s 34,000 claims among 3 million licensed drivers. “They have half a million more drivers but half the bodily injury claims as Louisiana,” Temple said.
Since the passage of tort reforms, the state’s insurance market has begun to show measurable improvement. LDI reports that more than 80 companies are now writing auto coverage in Louisiana, and several major carriers that previously reduced their footprint have resumed growth.
“While it’s too early to measure the impact, the recent tort reform efforts reinforce confidence that Louisiana is committed to creating a healthier market for both consumers and insurers, and we’re already seeing signs of increased competition for our business in the state,” said an Allstate representative.
About the Louisiana Department of Insurance
The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers. As a regulator, the LDI enforces laws that provide a fair and stable marketplace and ensures that insurers comply with policies designed to protect policyholders. For more information, download the LDIConnect mobile app, call 800-259-5300, or visit www.ldi.la.gov.
