AUTO INSURANCE RATES SKYROCKETING!
January 24th, 2022
Baton Rouge, Louisiana
AUTO INSURANCE RATES SKYROCKETING!
Now let’s see. It’s been almost two years since the Louisiana legislature passed legislation taking away certain legal rights of Louisiana insurance policyholders. But it will be worth it said many legislators and the insurance commissioner. We were assured that there was to be a dramatic drop in the cost of automobile insurance. By 25% said the insurance commissioner. I’ve been waiting and waiting to spend these great savings all of us were promised.
So just how much in savings have we received so far? Zilch, zero, naught, nil, nix, absolutely nothing. In fact the supposed cost reductions for Louisiana policy holders has gotten much worse. Far from any savings or even maintaining the status quo, insurance rates have skyrocketed. Bottom line? We all got conned by the insurance industry, the insurance commissioner, the Louisiana Association of Business and Industry (LABI), and numerous legislators, both republican and democrat. That’s right policyholders. You got snookered, thwarted, stymied, stumped and outright lied to.
The results are in and here is what policyholders are facing. The Zebra, the nation’s leading insurance comparison site, released its 2022 State of Auto Insurance Report revealing the national average annual cost for car insurance. Their report concludes: “Louisiana saw the largest increase of 42%, which now puts the state at the top spot for most expensive insurance.“ Forty two percent? You’ve got to be kidding.
Then look at what Zebra concludes are the top three most expensive cities in all the U.S. for car insurance. New Orleans comes in at number one with an average auto rate of $3,532. Next (in all of America) is Baton Rouge with an average rate of $3,473. And third is Alexandria at $3,202.
The study shows that the national average annual cost for auto insurance is $1,529, so the Bayou State is almost double this amount. In fact, Louisiana is some $626 more than Michigan, the next highest state in the nation.
Aah, but this must be an aberration say these so-called tort reformers who want to take away policyholder rights. O.K, so let’s take a look at the conclusions of another new report just released this week. It says: “A study by Dolman Law ranks the 50 states from best to worst in which to drive. The biggest loser? Louisiana. Insurance costs are high in Louisiana, which leads to a large number of uninsured drivers (22%) on the road. The state has a death toll of 1.53 deaths for every 100 million miles.”
Law journal the Louisiana Record headlined last week that “Tort reform has yet to lower Louisiana auto insurance rates, new data suggests. A 2020 tort reform measure has given consumers a false hope of auto insurance rate reductions in the wake of a new study predicting rising premium rates this year in Louisiana. The average cost of auto insurance in the state is now $3,720, which is 92% higher than the U.S. average, ValuePenguin reported.
And here is what was reported in the Baton Rouge Morning Advocate. “Louisiana drivers will pay the highest prices for auto insurance in the nation next year despite having passed a sweeping tort reform law that was sold as a way to dramatically lower premiums by as much as 25%, an insurance industry executive, who was one of the primary forces behind the legislation, told a panel of primarily Republican businessmen and legislators, who helped pass the new law.” The panel was told that “Lowering auto insurance rates really wasn’t the point of the tort reform legislation.”
So after legislators and the insurance commissioner told legislators that auto insurance rates would drop by 25% by the end of the year, we now learn that the whole lobbying effort by the insurance industry was a ruse! A sham! bogus! A fraud! The insurance industry will line their pockets at the expense of Louisiana policyholders.
Policyholders all over the state are being shortchanged by the failure of those in charge to act and build fairness into the insurance regulatory system. And you wonder why this are so few new residents moving into Louisiana.
Peace and Justice
Jim Brown’s syndicated column appears each week in numerous newspapers throughout the nation and on websites worldwide. You can read all his past columns and see continuing updates at http://www.jimbrownusa.com.