Ever since the hurricane Katrina hit Louisiana, the rates for auto insurance have hiked up to an extent that now it ranks the highest in the nation with the drivers paying a yearly premium if about $2510 as posted by web site insure.com.
NAIC ahs data only till the year 2007 but another study by it shows the ascending insurance prices when compared with the other states. Fro the year 2003 to 2005, based on the average auto insurance premium rates, Louisiana ranked the 4th, climbing up to the 3rd place in 2006 and 2nd in 2007.
The drivers of Louisiana play a high rate as compared to the drivers staying in the neighboring states. Drivers in Mississippi pay $814 approximately and $955 in Texas on an average. Some say that poor driving and the litigious nature of Louisiana is the reason that the prices hike up.
Jim Donelon, the insurance commissioner says that the high auto insurance rates is not a new thing here as it has been happening for over 2 decades now and he has been observing the figures carefully. He says that the rates going up in Louisiana is not the actual problem, the problem lies in the rates of insurance descending in other states.
The Vice President of insurance underwriters, Chris Pauline says that the Louisiana society is very litigious even on these little rules.
One more reason for the hike in rates could be their low populations making them take most advantage of the insurance policies offered to them. 12% of the motorists in lousiana do not hold insurances for car and 40% of the drivers just have the minimum requirement for coverage leaving half of them with unprotected assets with insurance policies.
19% of the drivers of Louisiana don’t have health coverage as well.
The vice president of insurance research council, David Corum says that Louisiana has frequencies of body injuries that touch the highest when compared with other states.
Richie Clements, Chalmette’s insurance agent says that if the habits of the drivers are focused on and safe driving conditions are looked upon and altered, there can be a big chance for some improvement. He says drivers should be tested, the roads should be checked and licenses as well.
It is said by Donelon that when and if people give out some time to buy policies that have high deducting packages, many of them will find better deals than the current ones.
“I firmly believe that competition — and we are seeing more auto insurers come on a regular basis — is the best way to protect consumers,” Donelon said.