Smart Auto Insurance Blog

Louisiana Governor Bobby Jindal is working hard to make sure that everyone in his state driving a car is carrying auto insurance.  Currently, one out of seven drivers in Louisiana is uninsured.  But with the signing of HB 1053, Jindal is steepening the penalties for residents who choose to drive without auto insurance.  This information comes from Matthew Morrisset’s Online Auto Insurance News article “Uninsured Drivers in Louisiana Facing Greater Consequences.”

Police officers in Louisiana used to only be able to tow an automobile if it was causing some type of danger to the public, but they now have free reign to tow any auto where the driver has been caught without insurance.  Once you’ve gotten in trouble for not carrying Louisiana auto insurance, your fines can be anywhere from $100 for a first time offense to $700 for a third time offense.  These changes take effect August 1st of this year, so it’s definitely time to check out auto insurance rates if you don’t currently have coverage.

There is a “No Pay, No Play” rule in place in Louisiana.  Anyone involved in an auto accident in the state will be in big financial troubles if they don’t have an auto insurance policy, even if they were not at fault in the accident.  For the first $25,000 in property damage and the first $15,000 in medical bills related to the accident, any driver who did not have auto insurance coverage will not be paid out, even if the other driver was at fault.  That is financially scary and can be devastating, especially since you have little to no control when someone else is at fault in an auto accident.  The bottom line is that it is cheaper to carry auto insurance than deal with the risks you could encounter if you don’t have it.

In Louisiana, auto insurance checkpoints will probably have to be announced ahead of time by police departments.  According to “La. wants public advance notice for insurance checkpoints,” Charles Nguyen of Online Auto Insurance says that HB 713 is moving onto the state House after passing through the Committee on Transportation, Highways, and Public Works.  This proposal would make police announce any checkpoints on a local news or radio broadcast, as well as transferring all of the same guidelines for current checkpoints to Louisiana auto insurance checkpoints.

Current checkpoints are used to look for those driving under the influence, make sure drivers are wearing seatbelts and have registered, insured vehicles.  Police need to use signs and flares as well as public notifications of their checkpoints.  They also have to have a non-field officer submit paperwork for the times, location, and duration of any checkpoints.  Police are required to perform all checkpoints in a timely manner so that no one has their time wasted.  They also have to use some type of system for stopping motorists, rather than stopping them at random.

As Louisiana police check more for auto insurance policies for drivers, lawmakers and insurance companies hope that the state will have fewer uninsured motorists.  They already have a policy called “no pay, no play.”  Motorists who don’t carry their own auto insurance policies cannot get payment for the first $15,000 of bodily injury or $25,000 of property damages, even if they were not at fault.  It really does pay to have auto insurance coverage, whether you are worried about getting in trouble at a checkpoint or losing payment in an accident.

Industry studies continuously show Louisiana auto insurance rates to be sky high and this is frustrating residents more and more.  They want to know why this is happening and why they are subject to some of the highest auto insurance rates in the nation.  The article “Car Insurance Costs” by John DeSantis on HoumaToday.com, offers some insight as to why this is consistently the case.

If you talk to local auto insurance agents, many believe the higher number of lawsuits involving auto insurance claims is to blame.  This is just one of many factors, but this is a very direct reason why rates have been increasing.  Auto insurance fraud, auto theft, traffic congestion, and overall claims filed all play into auto insurance rates being generally higher in Louisiana.

Some Louisiana officials are working hard towards reform to keep costs down.  Specifically, there is one law being worked on to make it more likely for insurers to settle rather than to fight cases they may win.  The director of Louisiana Lawsuit Abuse Watch, a non-profit organization out of Baton Rouge, says a particular law requires that a claim of at least $50,000 or more be made before a jury trial is assigned to a case and she feels this is unfair.  She says this isn’t fair to auto insurance companies defending lawsuits because many cases end up in front of judges and wastes a lot of time and money.  She feels there are cases where the judge is more likely to find for the plaintiff, although this is not always the case.

Written by Sara Smart

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According to the article “Louisiana Auto, Property Insurance Rates Highest in US” by Christopher Tidmore on Bayou Buzz, an average quote for Louisiana auto insurance is $1,111 which is the highest in the nation.  This is based on a recent survey conducted by InsWeb.

There was a drastic difference between Louisiana and other southern states.  For example, North Carolina’s average rate is $495 and Virgina’s average rate was $521.  This is about half of what the state of Louisiana is experiencing which is making it difficult for Louisiana residents to afford auto insurance coverage.

The closest southern state was Florida coming in at about $750 on average.  Louisiana also ranked high for very high property insurance rates as well.  The average premium for home owners insurance for the whole nation is $690.62 which is significantly cheaper than Louisiana’s average which is $1392.  This is up .2% from the previous year.

The south typically has higher insurance rates because of the devastating threats of hurricane season, but Louisiana consistently is one of the most expensive states for insurance in the United States.

Louisiana once again is experiencing the highest median auto insurance costs throughout the entire nation.  Coming in at $1,111 on average according to the InsWeb survey, Louisiana feels the weight of these high rates especially when compared to other states which are significantly lower.

According to the article “Louisiana Auto, Property Insurance Rates Highest in US” by Christopher Tidmore on BayouBuzz, North Carolina’s average cost is $495 and Virgina comes in at $521.  Both of these rates are less than half the cost of Louisiana auto insurance.  Florida auto insurance quotes have jumped and are on the higher side as well, coming in at about $750, which is worse than last year.

InsWeb’s 2011 Car Insurance Rate Report comes in handy when people are shopping around to compare auto insurance.  It gives consumers an idea of what to expect and what might be considered “high” in their state.  The annual report ranks all 50 states and Washinging DC and bases their rankings on the median household car insurance rate for a 6 month policy.  InsWeb gets their rates from a system that tracks rates from the largest auto insurance companies in every state in addition to actual profiles of their customers.

If you were to ask anyone in New York City if they pay a lot for auto insurance they most likely would tell you they do.  It makes sense since it’s the largest city in the US with common congested traffic and risky cab drivers.  But surprisingly, New York does not even show up on the top 20 states with high auto insurance rates.  According to the article “The States With the Highest & Lowest Auto Insurance Rates” by James Zol on TheAutoInsurance.com, Louisiana takes the top spot as the state with the highest auto insurance rates.

Based on a study completed by Insure.com, Louisiana has the highest auto insurance rates primarily due to their law structure.  According to MSN News, Louisiana allows for some of the highest out of court settlements in the US.  Because of this auto insurance companies charge Louisiana residents more to make up for this potential expense.

Maine takes the number one spot for the state with the lowest auto insurance rates.  This is mostly due to the low population which translates to less accidents and fewer lawsuits.  Many Maine residents tend to resolve auto accident situations without even contacting the insurance companies.  This translates to lower rates across the board in Maine.  This is something other states may want to consider before filing frivolous claims.  You may make some money in the short run, but in the long run everyone pays through higher auto insurance quotes.