State Farm to Drop Auto Rates by 2.5 %

State Farm insurance said it will lower auto coverage rates in Louisiana by an average of 2.5 percent at the end of the month representing an annual savings of $22.4 million to its customers.

State Farm insures about one in every three cars in Louisiana.

Company vice president Rob Stewart said the reduction is due to a better claims experience in the state.

Premiums for collision and comprehensive coverages are decreasing the most. The cost of the liability and medical payments coverages will go up for some and down for others.

The new rates are effective June 30.