I don’t understand how the increase in the minimum limits will make LA auto liab ins ‘the highest in the nation’. NY, NJ & CT now have the highest rates & NY minimums are 25/50/10.
Well, in raising the minimum coverages which a policyholder is required to carry, will that lower the cost for medical care?
No.
So, will companies lower the cost they are chargine for 25/50 BI?
No, probably not.
The article states that the premiums would be the highest – not the limits. Louisiana is already gouged on Homeowners due to hurricanes & Auto due those stealing cars to run from hurricanes – what more could we expect. Why not just post exit tolls for everyone leaving the GREAT (not) state?!?!?
You are right, but what will happen is this.
If you are in a not at fault accident and a driver is having to carry the new minimum limits, you have a better chance not having to hit your own policy to fix your car. That will save you money and cause the car to be fixed by the correct person or entity. Right now the liits are so low that 10k hardly fixes anything on a foreign type car. We need 50/100 limits or if a party hits you and isnt carrying insurance they are fined heavily and responsible for all damages. It is suppossed to be that way but the lawyers have things twisted of course.
I am an attorney. I am representing a family member who was severly injured in an accident. He was not at fault and the driver of the other car was 100% at fault and has 10/20/10 coverage and no other money. My family member’s hospital bill is $60k. Who is responsible for the bill? My family member, who will only get $10k from this dummy’s insurance company. That leaves my family member responsible for $50k.
So keep that in mind when you object to the increase. Also, the minimum was put in place in the 1980s – $10k in 1985 is like $40k today.
One other point to note – a corvette in the early 1980s was 15-20k. Today it’s $50-60k base model. Imagine having your dream car and some idiot with 10/20/10 coverage slamming into it – now you’re stuck with the difference.
Why would your client not have carried medical payments coverage on their pap? Are you in a no-fault state?
Re your comment on the Corvette, if I owned a $50k – $60k car why would I not insure it myself for physical damage losses? I wouldn’t consider relying on someone else to ensure that my asset was covered adequately. I believe in insuring your own asset in the event a loss occurs and allow your insurer to subrograte against the negligent party. If the negligent party is not adequately insured, then I don’t come out on the losing end as respects the repair/value of my vehicle.
Wow, very ridiculous comment. First, medpay on auto insurance is very very expensive if you go over $5k worth of coverage. (which is not that big of a help anyway). Also, what happens when you cannot go to work? Medpay doesn’t cover that.
Next, I agree that a prudent person should insure their investments. But your comment makes it sound like a person should pay for all the other morons out there who are underinsured. Why should one be responsible for an out of pocket expense for some drunk or just plain stupid driver who crashes into a family and injuring all of them?
By now you’ve used up the $10k in coverage a long time ago on the hospital lien. What do you do if you can’t work? How do you feed your family? Ah…right – not only should I have to pay for med pay, uninsured motorist, but also disability insurance. So now I’m out of pocket $300/mo because morons won’t get the insurance coverage they should. What do you do if you’re struggling to make your bills each month? Can’t afford disability insurance? Who’s going to pay in that scenario?
You’re saying that I should take a hit on my insurance, make a claim which will cost me even more money with increased premiums, because some moron will not have to pay $16 extra per month? Please.
People should get the insurance to protect themselves. But also realize $25k worth of coverage would help everyone, though not fix all problems. It’s a start.
Also, I see you did not argue with the $10k limit from the 1980s. Limits have to go up…like housing costs, car costs – everything is subject to inflation.
I understand your hostility. I’m from NY and we are a no-fault state. We have pip and a limit of $150k + an add’l $25k can be purchased for work loss, rehab, etc. Minimum is $50k. By your comments, I’m sure you are from elsewhere. Where? We also have med pay which some carriers will stack on top of pip if pip is exhausted. When you say med pay is very expensive when you go over $5k, what is your definition of ‘very expensive’?
What about uninsured/underinsured motorists coverage? Is that available in your state? This is first party coverage which could possibly help your client in his particular situation.
Rules/coverages vary from state to state. Our auto rates in NY are not the lowest in the nation, but given your scenario, I’m happy to pay more to live in NY.
I’m from Louisiana. We have won the title of “most expensive auto insurance” many years in a row (except this year), yet we require the least amount of coverage in the U.S. I believe it’s because there are so many drivers here without insurance at all…but you sure will see them with a set of $5000 rims on an Escalade.
Our state officials for some reason allow this kind of insurance gouging for some reason. It’s the same with homeowner’s insurance. Too many pockets being lined with the green stuff.
Also – look at the article. Everyone who complains is an insurance rep. They like charging high rates for the lowest coverage in America. They charge us based on what other states are being charged…even those with higher limits. Now they’ll have to charge the same (or slightly more) for a lot better coverage. It reduces the insurance companies’ bottom line – premiums go up $16 (estimated by researchers) but having to pay out 2.5 times what they used to (10k vs. 25k).
I don’t understand how the increase in the minimum limits will make LA auto liab ins ‘the highest in the nation’. NY, NJ & CT now have the highest rates & NY minimums are 25/50/10.
In my opinion the minimums should be even higher.
Well, in raising the minimum coverages which a policyholder is required to carry, will that lower the cost for medical care?
No.
So, will companies lower the cost they are chargine for 25/50 BI?
No, probably not.
The article states that the premiums would be the highest – not the limits. Louisiana is already gouged on Homeowners due to hurricanes & Auto due those stealing cars to run from hurricanes – what more could we expect. Why not just post exit tolls for everyone leaving the GREAT (not) state?!?!?
You are right, but what will happen is this.
If you are in a not at fault accident and a driver is having to carry the new minimum limits, you have a better chance not having to hit your own policy to fix your car. That will save you money and cause the car to be fixed by the correct person or entity. Right now the liits are so low that 10k hardly fixes anything on a foreign type car. We need 50/100 limits or if a party hits you and isnt carrying insurance they are fined heavily and responsible for all damages. It is suppossed to be that way but the lawyers have things twisted of course.
move to OHIO we have 12.5/25/7,5 state
limit the cost to go to the la limit would
be about $30. a year in Ohio and probably less in la
I am an attorney. I am representing a family member who was severly injured in an accident. He was not at fault and the driver of the other car was 100% at fault and has 10/20/10 coverage and no other money. My family member’s hospital bill is $60k. Who is responsible for the bill? My family member, who will only get $10k from this dummy’s insurance company. That leaves my family member responsible for $50k.
So keep that in mind when you object to the increase. Also, the minimum was put in place in the 1980s – $10k in 1985 is like $40k today.
One other point to note – a corvette in the early 1980s was 15-20k. Today it’s $50-60k base model. Imagine having your dream car and some idiot with 10/20/10 coverage slamming into it – now you’re stuck with the difference.
Why would your client not have carried medical payments coverage on their pap? Are you in a no-fault state?
Re your comment on the Corvette, if I owned a $50k – $60k car why would I not insure it myself for physical damage losses? I wouldn’t consider relying on someone else to ensure that my asset was covered adequately. I believe in insuring your own asset in the event a loss occurs and allow your insurer to subrograte against the negligent party. If the negligent party is not adequately insured, then I don’t come out on the losing end as respects the repair/value of my vehicle.
Wow, very ridiculous comment. First, medpay on auto insurance is very very expensive if you go over $5k worth of coverage. (which is not that big of a help anyway). Also, what happens when you cannot go to work? Medpay doesn’t cover that.
Next, I agree that a prudent person should insure their investments. But your comment makes it sound like a person should pay for all the other morons out there who are underinsured. Why should one be responsible for an out of pocket expense for some drunk or just plain stupid driver who crashes into a family and injuring all of them?
By now you’ve used up the $10k in coverage a long time ago on the hospital lien. What do you do if you can’t work? How do you feed your family? Ah…right – not only should I have to pay for med pay, uninsured motorist, but also disability insurance. So now I’m out of pocket $300/mo because morons won’t get the insurance coverage they should. What do you do if you’re struggling to make your bills each month? Can’t afford disability insurance? Who’s going to pay in that scenario?
You’re saying that I should take a hit on my insurance, make a claim which will cost me even more money with increased premiums, because some moron will not have to pay $16 extra per month? Please.
People should get the insurance to protect themselves. But also realize $25k worth of coverage would help everyone, though not fix all problems. It’s a start.
Also, I see you did not argue with the $10k limit from the 1980s. Limits have to go up…like housing costs, car costs – everything is subject to inflation.
I understand your hostility. I’m from NY and we are a no-fault state. We have pip and a limit of $150k + an add’l $25k can be purchased for work loss, rehab, etc. Minimum is $50k. By your comments, I’m sure you are from elsewhere. Where? We also have med pay which some carriers will stack on top of pip if pip is exhausted. When you say med pay is very expensive when you go over $5k, what is your definition of ‘very expensive’?
What about uninsured/underinsured motorists coverage? Is that available in your state? This is first party coverage which could possibly help your client in his particular situation.
Rules/coverages vary from state to state. Our auto rates in NY are not the lowest in the nation, but given your scenario, I’m happy to pay more to live in NY.
I’m from Louisiana. We have won the title of “most expensive auto insurance” many years in a row (except this year), yet we require the least amount of coverage in the U.S. I believe it’s because there are so many drivers here without insurance at all…but you sure will see them with a set of $5000 rims on an Escalade.
Our state officials for some reason allow this kind of insurance gouging for some reason. It’s the same with homeowner’s insurance. Too many pockets being lined with the green stuff.
Also – look at the article. Everyone who complains is an insurance rep. They like charging high rates for the lowest coverage in America. They charge us based on what other states are being charged…even those with higher limits. Now they’ll have to charge the same (or slightly more) for a lot better coverage. It reduces the insurance companies’ bottom line – premiums go up $16 (estimated by researchers) but having to pay out 2.5 times what they used to (10k vs. 25k).