Louisiana’s insurance commissioner says the state’s auto insurance market may be stabilizing, with a smaller rise in premiums expected this year compared with prior years.
Insurance Commissioner Jim Donelon says Louisiana’s auto market has seen a 2.1 percent average increase in rates this year. The Advocate reports that he said that’s about half the amount of increase midway through last year. By comparison, in 2017 rates climbed by 8.7 percent for the full year.
Louisiana has some of the highest auto insurance rates in the country, with sharp upticks in premium costs for the past five years.
Donelon says rates have risen because of increases in crashes and insurance claims, along with greater expense in repairing vehicles as technology gets more sophisticated. He also cited high litigation rates involving auto accidents.
The Livingston Parish News reported that Donelon told the Louisiana Press Club that distracted driving — a problem not limited to Louisiana — also has been a factor in rising auto insurance rates.
The Louisiana High Auto Rates Task Force, formed to investigate the high cost of auto insurance in the state, held its first meeting in August. The task force was created at the urging and request of state legislators. After investigating the state’s auto insurance market, the task force will make recommendations to the legislature for actions to lower rates.
Topics Auto Louisiana Pricing Trends
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