Louisiana has been hit rather hard this year when it comes to floods. There have been three major flooding events so far in the state this year. The first two happened in January and March. Then of course, there was the catastrophic flooding the state saw last month.
The impacts of these floods are numerous. One field they could end up being very impactful in is the field of auto insurance.
What does flooding have to do with auto insurance? Well, one of the types of coverage an auto insurance policy can include is coverage for vehicle damage caused by natural disasters. Included among the considerable damage caused by this year’s flooding was a great deal of vehicle damage. For example, it is estimated that the August flooding resulted in around 110,000 south Louisiana vehicles getting damaged or destroyed.
So, among the things auto insurance companies here in Louisiana could experience as a result of this year’s flooding is an influx of flood-damage-related claims. Such an influx could put a great deal of financial pressure on an auto insurance company, particularly if it is a smaller company. When under financial pressure, handling claims and disputes appropriately becomes particularly important for insurers. This is because the financial ramifications of what happens with auto insurance claims and disputes can be particularly strongly felt when an insurer is in a tight financial situation. Skilled insurance attorneys can help auto insurers navigate disputes or difficult issues that come up in connection to flood-related claims.
The flooding could also have impacts on auto insurance rates in the state. High levels of claims are one of the things that can push auto insurance rates up. So, some think the flooding might contribute to a continuation of the rising auto insurance rates Louisiana has seen in recent times.
One wonders what overall effects this year’s flooding will ultimately prove to have when it comes to the auto insurance industry here in Louisiana.
Source: The Advertiser, “2016 floods could leave behind higher car insurance,” Ken Stickney, Sept. 9, 2016