Louisiana Auto Insurance Rates

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I can't think of an increase that Jim Donelon (Insurance Commissioner) has not approved

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No proof, but it wouldn't surprise me if he was getting paid under the table by insurance lobbyists

One call that's all. A lot of lawyers making bank in this state.

Just remember that not only does Jim Donelon have to eat, but so do guys like Spencer Callahan, Gordon McKernan, Chip Forstall and the Womac!!!!!!

Meanwhile, the rest of us who try to stay legal and comply with the law get to pay ridiculous rates....then if for some reason, you let your insurance lapse, the reinstatement fees will kill you which of course leads to people onthe margins chosing to forego buying insurance....but hey, OMV people got to eat, as do guys like former state Senator Chris Broadwater and former State Police Superintendent Mike Edmonston

It is do some to UM but mostly to litigation



also a 15% increase was approved this year, pretty much everyones auto probably went up a good bit this year, some a lot more than a good bit

LoL. I had dinner just last night with a prominent local attorney who is involved in the insurance industry. He started bitching that his oldest daughter just got her license and the insurance is outrageous. I flat out told him that it was his damn fault for suing the insurance companies every time someone bumps into another driver.

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or does Louisiana have unusually high auto insurance.

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Yes.

-Uninsured drivers
-Insured drivers who have bare minimum coverage that isn't enough to cover injuries or property damage they cause
-A population that is very litigious and thinks a minor fender bender equals a big payday.
-Injury attorney billboards and ads that reinforce and encourage the litigious nature of our population
-$50,000 jury trial threshold
-Natural disasters...primarily hail and flood damaged vehicles.

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very year it seems to go up

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Cost of settling claims related to reasons listed above doesn't get any cheaper. Then add in increasing cost of new vehicles and higher costs to repair them due to all the gadgets, sensors, and cameras that are increasingly more common in vehicles.


Only way LA will ever get insurance rates in line with the national average is if the legislature takes up tort reform that has significant impact on the number of frivolous suits and injury claims. But they won't because too many state legislators are lawyers themselves or have lawyers donating to their campaigns.

Jury threshold in La is $50K. Next highest is Maryland at $15K.

There is is no pay/no play provision in this State. That should lower our insurance.

We have a high rate of uninsured motorist, but that is almost a direct result of the cost of insurance.

The real driver is that our system allows for a judges decision up to $50k before a jury trial; as opposed to most other States where a judges decision is capped at $10k before a just trial.

So that means that an Attorney can sue for limited costs and the insurance company will settle and the Atty can win a sizable amount without much work. The problem with changing this law is our Judges are elected, they are Atty's who deal with Atty's, and our Legislature is mostly Atty's.

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I am in Houston but most of my book is TX/LA. Many carriers will not write auto in LA. Some won't even write umbrellas in LA because they don't want to go over the auto.

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It is only getting worse. There are several carriers that either wanting out of the market in LA or will be increasing to a point where they will price themselves out.