State Farm Mutual Automobile Insurance, which covers about one in every three cars in Louisiana, is raising insurance rates for drivers, according to Associated Press reports.
The company announced that the increases will average 3.4 percent, starting Feb. 17. Going up will be premiums for liability, collision and comprehensive coverage.
State Farm spokesman Gary Stephenson says the average increase per insurance policy will be about $35 per year.
State Farm has a little more than 1 million auto policyholders in Louisiana, making it the biggest carrier in the state. Overall premium changes for individual motorists will vary depending on factors such as the coverage they carry, the discounts for which they qualify, where they live, the kind of car insured, who drives it and how much it is driven.
“The primary [cost] driver is the uptick in the severity of claims,” Stephenson said. “The value of the vehicles we are covering has increased, parts are costing a little bit more, labor costs are trending slightly upward.”