Louisiana car insurance rates on the rise

Louisiana car insurance rates on the rise
(Source: KPLC)

LAKE CHARLES, LA (KPLC) - Your car insurance payments could be taking a bigger bite out of your wallet soon.

According to the Louisiana Department of Insurance, several factors contribute to the price hike.

Louisiana Insurance Commissioner Jim Donelon said, by far, distracted driving is the biggest reason for the price hike.

"We all see it every day," Donelon said. "And it's resulting not only in insurance rates going up in all 50 states but it's killing motorists on American highways and streets in record numbers."

Tommy Curtis, who's been in the insurance business for over 30 years, says in his experience, over 90 percent of the accident reports he gets are from distracted driving.

"It use to be the distraction was simply a car radio," Curtis said. "There are a lot more distractions now. People are paying more because companies are paying more."

Donelon said lower gas prices also contribute to higher rates because they encourage more people to drive since gas is cheaper.

There's also the high number of accident claims and cases brought to court.

Donelon said the solution to bring prices back down would be more insurance companies coming into the state.

"More companies coming in and competing with each other," Donelon said. "And when they do that, prices stabilize and then they drop."

According to Insure.com, Louisiana ranked behind only Michigan in 2017, for the highest insurance rates in the United States.

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