Farmers Insurance Discontinues Home and Auto Insurance Policies in L.A.

National Quotes recent research has shown that Farmers Insurance has decided to pull out of the insurance industry in Louisiana, dropping 7,000 auto and 23,000 homeowner insurance policies.

Scottsdale, AZ (prHWY.com) February 18, 2013 - National Quotes recent research has shown that Farmers Insurance has decided to pull out of the insurance industry in Louisiana, dropping 7,000 auto and 23,000 homeowner insurance policies.

According to Louisiana Insurance Commissioner Jim Donelon, Farmers insurance holds approximately 2.5 percent of the homeowner's insurance market in the state, but substantial losses have forced Farmers to pull out of Louisiana.

Farmers was unsuccessful in its attempts to increase its homeowners insurance premiums on two previous occasions. In 2010, Farmers tried to raise rates statewide for more than 25,561 policyholders by an average of 18.3 percent and then again by an average of 39 percent in 2011 but was met with rejection from Louisiana's insurance department.

NationalQuotes has learned that Farmers Insurance will not be renewing anymore home or auto policies beginning April 27, 2013. Donelon explained that Louisiana still had plenty of insurers vying for policyholders.

"I am totally confident, and I told them this when we met last month, that we can readily find places for their policyholders with other companies looking for business in our homeowner's market," stated Donelon.

According to Independent Agents and Brokers of Louisiana Chief Executive Officer Jeff Albright, seeing an insurance provider pull it business out of state is a little disappointing because Louisiana needs more insurance competition, not less.

Albright reported that the decision for Farmers to pull its business out of state was due to the restructuring of Zurich Insurance Group Ltd, the company that owns Farmers Insurance.

The move will also have will force policyholders to find new insurance, affecting many independent agents. Independent agents will now have to find other insurers to replace Farmer's business, and some may struggle with the change, stated Albright.

Albright explained that one good thing about being an independent agent during this transition is the face that they represent many providers, allowing them to help policyholders find the right insurance coverage.

NationalQuotes.com recommends for consumers looking for affordable home insurance or auto insurance to compare home and car insurance quotes online through different providers to ensure the proper coverage.

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Categories: Insurance

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