Prices for coverage have been skyrocketing and motorists have reached the point that they can’t afford it.
Louisiana auto insurance has been steadily on the rise, and those increases have been getting increasingly sharp more recently.
According to the Insurance Commissioner, the Louisiana auto insurance market has become a challenge both for personal policies as well as commercial coverage. The reason, said the commissioner, is that the state is home to the highest claims-to-litigation ratio in the country. This situation has only worsened as a number of insurers have decided to step out of the state’s market at a striking rate.
Congressman Garret Graves has said that the costs associated with the most common types of coverage in the state – including vehicle, property, and flood – are now starting to price people out of being able to afford to live there.
Louisiana auto insurance rates are some of the highest paid in the country, and people are leaving.
“We have some of the highest auto insurance rates in America,” explained Graves.
Since insurers have been leaving the state, those remaining have been consolidating and a smaller number are writing policies. Without as many options, prices aren’t controlled by competition, and they have been climbing.
“It’s just too expensive comparative to other states in terms of the insurance market,” said Graves.
According to the state commissioner, the best ways to ensure that residents are paying the lowest possible premiums for coverage is to make sure that they shop for better deals, take part in usage-based policies that use telematics to monitor good driving habits, and check to see if there are any discounts that they might qualify to receive.
Those paying the highest Louisiana auto insurance premiums overall are teen drivers, since they have the highest crash rates. Moreover, teens also have a higher likelihood of running red lights, speeding, and driving without wearing a seatbelt. Still, many insurers offer discounts to young drivers who earn good grades, so checking to see if this is an option can be worthwhile for teens who are seeking cheaper coverage.
