A recent bill aimed at cutting Louisiana's exorbitant auto-insurance rates was shot down 4-1 by a Senate committee on May 14.
Sponsored by Rep. Kirk Talbot (R-River Ridge), House Bill 372 would have implemented a number of legislative changes such as prohibiting lawsuits against insurance companies. The bill had passed the House 69-30 a week before being rejected by the Senate committee, according to Kalb.com
“It is disheartening to see lawmakers turn down an important opportunity to work toward lessening the burden Louisiana's extraordinarily high auto-insurance rates are placing on working families across our state,” Daniel Erspamer, CEO of the Pelican Institute for Public Policy, said. “This is a perfect example of some of our elected leaders' refusal to reject the broken status quo that has gotten us into the mess we are in today.”
Daniel Erspamer, CEO of the Pelican Institute for Public Policy
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The poor climate for insurance companies and drivers alike has been pushing both groups out of the state as families and companies seek more affordable options such as Texas.
“As insurance companies continue to leave Louisiana and competition further decreases, Louisianans must remember the neglected opportunity we had to provide true balance to our lopsided legal system and put more power back into the hands of hard-working citizens rather than entrenched special interests,” Erspamer said.
According to Kalb.com, Louisiana is one of the most expensive states in the nation for auto insurance, with monthly rates averaging $192.