Lafayette
337-446-2442
Caffery, Oubre, Campbell & Garrison, L.L.P.
New Iberia
337-352-2310
Service, Integrity, Results

LA bill cutting car insurance rates clears initial hurdle in House

Louisiana House Bill 372 recently gained approval in the state House of Representatives, and with relative ease. The would-be legislation that focuses on cutting auto insurance premiums for state drivers essentially sailed through the chamber on a 69-30 tally. Next stop: the Louisiana Senate.

As noted in a recent media overview of the bill and its particulars, HB 372 commands broad support from a number of diverse backers. Those centrally include Louisiana business groups, the insurance industry and state Insurance Commissioner Jim Donelon. The cited article stresses that Donelon “has pursued [similar] legislation for years.”

Here’s why: Louisiana’s auto insurance rates are comparatively high. In fact, they are the second highest of any state in the country.

Myriad factors are pointed to as being responsible for that unenviable reality, though Donelon points his finger at a select few premium-spiking catalysts. Distracted driving is reportedly an outsized problem across the state, with inattentive motorists directly contributing to legions of crashes. Especially cheap gas prices in Louisiana have both figurately and literally fueled sharp increases in motorists clogging roadways spanning the state. And collision-linked repairs are flatly pricey.

All those factors sorely challenge insurers trying to keep the lid on rates. The expressed hope of HR 372 supporters is that the cost savings to insurers from the bill’s price-slashing provisions will be passed along to policyholders.

That is what insurance companies apparently want to do. State Farm, which reportedly insurers about one million people in Louisiana, has cut its premium rates on several occasions within the past year.

Louisiana Association of Business and Industry chief Stephen Waguespack calls the legislation “the most important bill of the Legislative session.”

We will track its progress for readers.

No Comments

Leave a comment
Comment Information

contact us

With offices in Lafayette and New Iberia, our lawyers represent clients in state and federal courts throughout Louisiana. Contact us today to schedule your case assessment with one of our experienced attorneys. Email or call us at 337-446-2442 to reach our Lafayette office or call 337-352-2310 to reach our New Iberia office.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Lafayette Office
100 East Vermilion Street
Suite 201
Lafayette, LA 70501

Phone: 337-446-2442
Map & Directions

Lafayette Office

New Iberia Office
800 South Lewis Street
Suite 205
New Iberia, LA 70560

Phone: 337-352-2310
Map & Directions

New Iberia Office