High car accident levels are a bad thing in many respects. In addition to the major safety concerns they raise, high traffic crash levels can also have negative insurance implications for both drivers and insurers.
For drivers, high accident rates in the area they live in can lead to higher insurance premiums. Big accident occurrence levels are one of the things that are being pointed to as being behind the particularly high auto insurance rates in Louisiana.
According to a recent study, some areas in Louisiana have auto insurance rates that significantly outpace the rates of most of the rest of the country. New Orleans and Baton Rouge were found to have particularly high rates.
Also, rates have been trending up in the state.
High accident levels can lead to higher auto insurance rates because they generally mean more auto insurance claims, such as body injury claims. High levels of bodily injury claims are another thing that has been put forward as a contributor to the state's high auto insurance premiums.
In addition to bumping up rates for drivers, high claim levels can pose significant financial challenges to auto insurers. These challenges can potentially be exacerbated when problems or disputes arise in relation to such claims. Experienced lawyers can help insurance companies in dealing with problems and disputes related to auto insurance claims.
In addition to insurance claims, another thing auto insurance companies sometimes face in relation to auto accidents is lawsuits. And it appears that such lawsuits are particularly common here in Louisiana, as high litigation levels are another thing that has been identified as a possible driving force in Louisiana's high auto insurance premiums. When facing auto-accident-related lawsuits in the state, it can be important for insurance companies to have the guidance of an attorney skilled in Louisiana insurance defense.
Source: nola.com, "High claims, litigation continue to drive Louisiana auto insurance rates up," Renita D. Young, Feb. 14, 2016