A Question For Lawyers About Insurance Rates

It affects succession/ inheritance if you die without a will if I’m not mistaken.

Louisiana adopted the UCC 35 years ago.

This is wrong and stupid. UCC has nothing to do with insurance and LA has adopted most of it.

Our insurance rates are high because we have, on average, a poor, uneducated, highly litigious population. And the biggest driving issue of rates is really the third point. We have over twice as many claims per capita as other states. Insurers factor that into their rates.

The plaintiffs' bar will roll in at some point and talk about how they get fair shakes and justice for the injured. But ask yourself if the people of Louisiana really need over twice as much justice as everyone else in the country.

Nothing you discussed in business law impacts car insurance rates

Correct. Louisiana's unique legal tradition is most patent today in property, sales, and succession issues. But even those tend to get to the same place, albeit by a different path. The specific tort statutes are not, in practice, particularly different thank those in other states.

Our rates are high bc of a lack of capacity in the state. It is simple supply and demand. Insurers don’t want to do business in the state on the commercial or residential auto side. As a result, there are less insurers and a high demand for insurance. This rates are high. If you change the climate to make it less favorable for plaintiff attorneys , it will attract more insurers to the state. This will increase capacity (supply) , decreasing cost. Right now the few playing in the state can charge whatever they desire because if the lack of competition. Of things don’t change soon , the plaintiffs lawyers will “sue” themselves out of money. Essentially , insurers will only offer required minimum limits in order to reduce their exposure. If this happens they will bankrupt themselves.