Regardless of robust revenue progress that has helped enhance private auto insurance coverage affordability in Louisiana, the state stays the least inexpensive amongst its Southern neighbors and the remainder of america, in response to the Insurance coverage Analysis Council (IRC).
In 2022, the common annual premium expenditure per car for auto insurance coverage in Louisiana was $1,588, which is almost 40 p.c above the nationwide common and practically double that of the lowest-cost Southern state of North Carolina ($840), the IRC report says. Louisiana’s spending accounted for two.67 p.c of the median family revenue within the state.
Florida’s common annual premium expenditures, at $1,625, exceed Louisiana’s, however the state is barely extra inexpensive; Florida’s increased median revenue leads to a decrease expenditure share of revenue (2.49 p.c). The Sunshine State will not be included within the IRC report as a result of it’s the solely no-fault jurisdiction among the many Southern states, a proven fact that skews some comparisons.
All of the Southern states had median family revenue beneath the general U.S. determine, contributing to affordability challenges within the area as a complete. This was very true for Mississippi, the place the median revenue was 35 p.c beneath the U.S. median.
Along with low common family incomes, Louisiana’s affordability points stem from such value drivers as the next tendency to file harm claims when an accident happens, a excessive charge of underinsured motorists, and a excessive charge of declare litigation. Earlier IRC declare analysis has pointed to excessive charges of lawyer involvement in auto harm claims within the state.
As well as, Louisiana obtained the second-lowest rating in a 2019 survey of companies concerning the equity of states’ litigation landscapes performed by the U.S. Chamber of Commerce. It is also a perennial member of the “Judicial Hellholes” record printed by the American Tort Reform Affiliation (ATRA).
IRC – like Triple-I – is an affiliate of The Institutes.
Be taught Extra:
Who’s Financing Authorized System Abuse? Louisianans Must Know
Louisiana Nonetheless Least Reasonably priced State for Private Auto, Owners Insurance coverage
Louisiana’s Insurance coverage Woes Worsen as Florida Works to Repair Its Issues
Louisiana Insurance coverage Regulator Points Stop & Desist Order to Texas Legislation Agency
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