House OKs liability hike

• By MARK BALLARD AND MARSHA SHULER
• Advocate Capitol News Bureau
• Published: May 20, 2008 - Page: 1A - UPDATED: 12:05 a.m.

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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.