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Several major auto insurance businesses are reducing rates in Louisiana as fewer drivers are on roadways commuting to work. 

Allstate expects to drop its auto insurance rates by 3% on average and as much as 7% for some customers, with fewer drivers on roadways during the coronavirus pandemic. 

Allstate has 134,170 customers in Louisiana who will be impacted, with the company collecting $11 million less in insurance premiums as a result of the decision. The rate cut takes effect on April 5 for new policies and will be applied to existing customers' policies as they are renewed, according to state regulatory filings. 

"The pandemic has changed daily routines for many people, leading to a rise in remote work, which means there are fewer drivers on the road," Allstate said in a statement. "Though driving levels have picked up from last spring, miles driven are still about 10% to 15% below pre-pandemic levels."

The company has reduced rates across the majority of the U.S. since the pandemic began. 

Auto insurers have been offering rebates or reducing rates for the past few months in response to fewer vehicles on the road as more residents work from home and avoid travel to curb the spread of the coronavirus pandemic.

The Louisiana Farm Bureau, Progressive Insurance and State Farm all cut auto insurance rates in Louisiana in the past few months — between 2.4% and 9.6%. 

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Progressive had 204,339 policy holders; Farm Bureau, 236,113 policy holders; and State Farm, roughly 1 million customers across the state. 

Beyond State Farm, more auto insurers look to drop rates this fall in Louisiana


Email Kristen Mosbrucker at kmosbrucker@theadvocate.com.