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Friday, July 18, 2008

NEWS

House OKs liability hike

By a razor-thin margin, the Louisiana House of Representatives on Monday decided that more than 1 million Louisiana drivers should have more automobile insurance coverage.

The House voted 57-35 for legislation that would require motorists to carry 25-50-25 automobile liability coverage in order to drive legally in Louisiana. House Bill 1312 needed 53 votes to pass.

Current state law requires motorists to carry 10-20-10, meaning at least $10,000 for the property damage of others, $20,000 for everyone hurt in an accident and up to $10,000 per person injured or killed.

“It’s the right thing to do,” said state Rep. Erich Ponti, R-Baton Rouge, who sponsored the legislation similar to a bill then-Gov. Kathleen Blanco vetoed in 2007.

Insurance companies opposing the bill claim that raising the minimum would raise rates for Louisiana drivers by 20 to 30 percent.

About half of the state’s 4 million drivers already buy policies with higher than minimum coverage, according to the state Insurance Department.

HB1312 would raise the current minimums by 250 percent to $25,000 for property damage and the death or injury of one person; $50,000 for multiple deaths or injuries per accident.

Ponti argued that Louisiana set its insurance minimums in the 1980s when automobiles and medical treatment cost much less. The 10-20-10 coverage means that injured motorists cannot get reimbursed for costs, Ponti said. The higher minimum would more likely cover injuries and damage caused by a driver found liable for an accident, he said.

Louisiana has the lowest minimums in the nation. Ponti said 33 states have a 25-50-25 minimum coverage requirement, including all of Louisiana’s neighbors.

“They all seem to survive,” Ponti said.

Texas is preparing to move to a 30-60-30 requirement in 2011, he said.

Ponti disputed notes opponents sent to lawmakers desks claiming that insurance rates would go up 22 to 27 percent.

Opponents argued that more than 1 million Louisiana drivers now buying the minimum insurance would immediately face higher insurance costs in addition to higher fuel prices.


Comments (15)
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Terry
Tuesday, May 20, 2008
1:21 AM

If I have to pay more for insurance " I want more insurance check points Get the uninsured OFF THE ROADS. Inpound their cars, ALSO police needs to stop all these Mexicans on I-10 pulling up to 4 vehicles with one car or truck. Check ALL OF THEM for insurance.
Bo
Tuesday, May 20, 2008
7:56 AM

Score another victory for the insurance industry in La. While I am not in favor of random roadblocks I am all for getting uninsured off the road. What I always wondered was why we could have 3 insurance commissioners in jail at the same time but never have our insurance rates looked at for a reduction. To the best of my knowledge they were all indicted for dealings related to their position which can only mean they would have allowed increases in insurance rates that were not needed to begin with. What other reason would an insurance company have backroom dealings with the State Insurance Commissioner but to raise the publics rates?
be
Tuesday, May 20, 2008
9:02 AM

If you have ever been in an accident where the other person has this minimum insurance joke, you would feel that it is about time our legislators wake up. My friend was in such an accident. Her car was damaged by over $20,000. Her Avalon was 2 months old. Guess who's insurance had to cover the costs. Yes, hers. So it is about time the state requires that the insured should pay a minimum of $25,000 to damages they caused. It is only fair considering the cost of a new car. For those who voted against this needed legislation, shame on you. I hope you think about this when you or your family gets on the road. This is serious problem that needs your attention and future correction.
Betty
Tuesday, May 20, 2008
9:38 AM

I agreed with Terry. Personally I think peple who do not purchase insurance has NO RIGHT to drive a vehicle, this is a PRIVLEDGE given to us. They purchase insurance just long enough to satisfy their needs then drop it. The officials we pay should pull these vehicles off the roads and make the non-payees work very hard to prove they DESERVE to get their vehicles back and check keep on the violators! I worked in an insurane office and saw this happen over and over again. If you can afford to buy big SUV's then get the insurance coverage and keep it! They claim they need their "cars" go to go work but that's why we have a bus system! I have heard ex-coworkers, who made more wages than me, say they could not afford to buy insurance coverage whatever type that was needed and they would get things for free. Just recently my home and flood insurance rates increased and even though I do not have the money I have no choice but to pay the increase and I live on a VERY limited income with no chance of qualifing for all the "freebies" that people are getting. This auto increase rate will effect me by $75.00 to $115.00, according the the 20% - 30% increase, per year on top of my other expenses that are needed: food, meds,utilities, insurances, gasoline and I could continue on and on. My theory is, if you cannot afford it then DO NOT BUY IT! That's what my parents taught me, don't make other people pay for your lifetyle.
Former Republican
Tuesday, May 20, 2008
10:25 AM

This is a good move; nice to see the legislature actually moving on to doing the people's business, instead of blathering on about whether we should teach bunk science. Even though the median value of a car in Louisiana is lower than in California, our rates are TWICE as high in the Bayou state as in the Bay Area (where every other car is less than three years old) because of all the uninsured drivers, scofflaws and drunks plying Louisiana's roads. Checkpoints should be going up every weekend - call them what you want - seat belt checkpoints, insurance checkpoints, drunk driving checkpoints - but get these idiots off the road if they're not willing to pay for insurance. Impound their cars at $50/day until they show proof of insurance - it can't be that hard, because other states do it.
giving up
Tuesday, May 20, 2008
10:42 AM

Well, I agree that the current limitations fall woefully short of the potential losses that can be incurred, and the raise in limits will help that. However, note that the article says that Louisiana has the lowest liability requirements and also the highest insurance rates in the nation. I wonder if that could possibly have anything at all to do with the fact that many of our elected officials are either in the insurance business or have been in the insurance business. I agree that the uninsured people should not drive and need to be taken off the roads. However, I also know that there are many people who truly don't have the money because they are buying such luxurious items as food and gasoline that have a heck of a time affording liability insurance on their clunkers. Raising the rates will surely help them. This would not be nearly as much of a problem if the rates for insurance were anywhere near what they should be.
Bo
Tuesday, May 20, 2008
12:44 PM

If you choose to drive a car worth 2-3 times what the average person drives I think you should be the one that pays to insure it as well. If you can affrod the $50,000 Lexus then you can afford to insure it on your own. Yes it is a low amount of coverage but look how much we pay for that little bit compared to other states. California certainly has a lot more uninsured drivers than La. does with the number of illegal aliens there. Insurance is a scam and politicians use it to line their and their cronies pockets at the expense of everyone in the state. Drop the rate for the coverage we have to what it should be then increase the amount required. There is a reason 3 INSURANCE COMMISSIONERS went to jail simultaniously and it wasn't because they faught to lower our rates.
Former Republican
Tuesday, May 20, 2008
12:50 PM

" I wonder if that could possibly have anything at all to do with the fact that many of our elected officials are either in the insurance business or have been in the insurance business." Yes, it's that, and the fact that Louisiana has some of the lowest driver testing standards in the nation, plus a lot of older drivers and uninsured drivers.
Doug
Tuesday, May 20, 2008
1:28 PM

Public transportation in Baton Rouge is a joke. Us poor people need to get around too, and we can't afford additional insurance. So....I say raise the minimums, tax insurance companies' subsequent profits, use the revenue from the taxes to provide insurance vouchers for the poorest drivers (or maybe even invest in some public transportation). I know it will never happen, but one can dream.
mark edward marchiafava
Tuesday, May 20, 2008
3:12 PM

Some of the comments here amaze me. It's disheartening to read how many Amerikans are so totally mesmerized by and in favor of a police state. For Louisianians to actually beg for MORE police tactics/roadblocks, etc, is ludicrous. I would ask "when will you people ever learn," but I already know the answer: never. Contrary to what most believe, driving is NOT a privilege. You have been brainwashed. Forcing anyone into a civil, contractual relationship is NOT the role of government. Providing public transportation is also not a legitimate function of government. Doing the same thing over and over, expecting different results, is insanity. Well, this IS Louisiana, isn't it?
Paddio
Tuesday, May 20, 2008
3:30 PM

Let's be real people. For all of you who believe this was just a noble act by our legislators to protect the hard working people against those who abuse the system are dreaming. Insurance is a crooked business. Again, how could the insurance rates be so high in Louisiana as opposed to other larger metropolitan areas? Its very simple. Dirty politics. You are applauding them now, but we will see how long that admiration last for our beloved legislature.
Joe
Tuesday, May 20, 2008
3:40 PM

Let's see if I have this one correct....our esteemed legislators want to increase the amount of insurance coverage per driver YET we are struggling to get those who can only afford the minimum coverage to keep their insurance current. Now, what do you think is going to happen to the number of drivers WITHOUT insurance if this bill passes? Yep! Just MORE uninsured drivers on the road. I wonder if the legislature has a plan to deal with that!
Terry Too
Tuesday, May 20, 2008
8:35 PM

Do most people understand the purpose of liability insurance? It pays for the value of the other vehicle if you are at fault in an accident. At the currently required $10,000, what happens if you total someone's $50,000 car? Well, their insurance even though they were not at fault. However, one could argue that, as insurance rates are based on the value of the vehicle, accident and injury rates in a given vehicle model, etc., then people with more expensive vehicles should have to "pick up the tab." Those of us with worn out old clunkers cannot afford the additional cost required to pay for someone else to drive expensive cars.
DRamsey
Tuesday, May 20, 2008
10:49 PM

Let just remember Ponti at election time. He wants to raise insurance cost on working families lets make sure we throw this BUM out at election time.
Dougj
Wednesday, May 21, 2008
12:14 AM

An increase in the required minimum would mean those of us who already purchase the higher amount will be less likely to have our own insurance provider pay our damages when hit by an underinsured driver. Therefore, our rates should be lowered.
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