Auto insurance rates are headed up due to claims and litigation

Louisiana Auto Insurance rates

The drivers in Louisiana are familiar with rising premiums, and now they are given another reason why.

An auto insurance rates study has added some confirmation for residents in Louisiana who have been wondering why their premiums have been steadily rising and are now continuing to do so.

The study didn’t necessarily discover anything new but it did prove what had previously been believed.

Louisiana Auto InsuranceWhat it found was that in a state where the auto insurance premiums are recognized as among the highest in the country – particularly in Baton Rouge and New Orleans (where the fifth and second highest rates are paid) – there are some very specific reasons that motorists are seeing higher monthly bills for coverage than those in other parts of the United States. The study was conducted by NerdWallet, a consumer advocacy website. It determined that the average Baton Rouge driver is paying $3,363.73 per year, while those in New Orleans are paying a tremendous $4,309.61 per year.

Those auto insurance rates are expected to rise very soon as major insurers are already implementing increases.

For example, State Farm Mutual Automobile Insurance Co., the largest vehicle coverage provider in Louisiana, raised its rates on Monday by an average of 3.4 percent. Equally, late last year, Geico raised its rates by an average of 4.3 percent and Progressive increased its rates by an average of 4.9 percent.

Among the top reasons that were identified for sending those premiums upward were that there are very high claims costs that must be paid by insurers in the state. That issue was directly connected to the high instance of accidents among Louisiana drivers. Beyond that, the state also saw a large number of filings of lawsuits and of claims for bodily injuries as a result of vehicle accidents.

In Louisiana, there is a trend toward suing after a vehicle accident has occurred. There are more lawsuits filed by drivers and passengers in this state than anywhere else in the country. This makes auto insurance more expensive for these drivers than for their counterparts in other states as legal expenses rapidly spike total costs.

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