Louisiana Record

Tuesday, September 17, 2019

Pelican Institute says one firm's premium cuts will have minimal impact on state's drivers

Reform

By Carrie Bradon | Jul 10, 2019


For those who call Louisiana home, a decrease in record-high auto insurance rates is coming as a relief, though a price drop is not a direct result of any reform or legislation. 

According to a press release from the Office of the Louisiana Department of Insurance, the Louisiana Farm Bureau is requesting a 4.4% rate decrease on 220,000 auto policies.

“In the last year, three of the top auto insurers in our state have sought rate decreases for Louisiana drivers. This reduction, along with those previously taken by State Farm and Progressive, further confirms that automobile insurance competition in Louisiana is moving premiums in the right direction,” Insurance Commissioner Jim Donelon said in the press release. 

Renee Amar, vice president of government affairs, told Louisiana Record, that the key takeaway is that is that despite the commissioner's approval of rate decreases for some insurers, Louisianans still pay more than any other state in the country

“Going company to company and gradually approving rate drops will not solve the core problem,” Amar said. “If we want to make car insurance more affordable for Louisianans, we must enact comprehensive reforms to our legal system.”

Amar said decreases cannot be expected to stick once insurance companies begin to feel the heat of lawsuits, stating that reform is the only long term solution.

“Insurers aren't going to bring rates down when they're facing lawsuits at every turn, and we shouldn't expect them to,” Amar said. “Fundamental, common-sense legal reform is the best path forward." 

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