Consumer advocate concerned about rising car insurance rates
Lake Charles, LA (KPLC) - According to a new report, Louisiana car insurance rates will continue to rise higher than the national average this year.
Lawsuit reform a year and a half ago was supposed to reduce car insurance in Louisiana, but the report says Louisiana is second in the country in highest rates.
According to Value Penguin, whose parent company is Lending Tree, Louisiana is second only to Michigan in highest car insurance rates.
Another company that compares rates, zebra.com, says Louisiana is third in the country. Consumer advocate Eric Holl says Louisiana has not seen the reductions it should have since tort reform.
“Value penguin, they do this every year. It’s called the ‘State of Auto Insurance,’” Holl said. “And this year’s report predicted that Louisiana’s auto insurance rates are going to continue to rise in 2022. And they’re supposed to rise even faster than the national average.”
He says rates should reflect how a person drives but is often based on other factors.
“Including credit score, gender, occupation, education, things like that. So, right now in Louisiana, you could be the best driver in the history of the world: never go over the speed limit, come to a full stop at every stop sign. But if you have poor credit, you will pay more for car insurance than a wealthy person with a DWI conviction who has excellent credit.”
Holl hopes this year in the regular session they can pass legislation to police the industry to make sure they play by the rules.
Holl says lower rates would also allow under-insured drivers to afford more and better coverage.
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