Louisiana drivers are no strangers to the concept of high insurance rates. With mounting household expenses and other economic pressures, they understandably want to find answers, if they do not understand its source.
Many people in Louisiana blame lawyers for high insurance rates when, in fact, companies, such as State Farm, have progressively lowered their rates over time.
As of November 25, 2019, State Farm Insurance implemented a proposed rate decrease. Drivers can expect to see a marked reduction, which signifies the company’s fourth decrease over the last two years. The additional rate decrease is expected to be 2.6 percent, which brings their combined rate reductions down to 10.4 percent.
The economic impact is tremendous for the State of Louisiana since the estimated savings are slated to be around $36 million. These additional dollars not only impact an individual’s household income, but it gives the state a much-needed injection of economic stimulation.
State Farm officials state that their decision was based on its desire to comprehensively serve local communities by improving costs associated with carrying an insurance policy. The specific rate decreases will depend on your policy, coverage, and driving history.
The move does not come without pressure from external influences. Journalists, attorneys, and lawmakers have long criticized the rates that insurers charge.
Back in May of 2019, the Omnibus Premium Reduction Act was struck down by the Senate A Judiciary Committee. It would have increased the statute of limitations to file a claim from one year to two and reduced the jury trial threshold from $50,0000 to $5,000.
The decision was made based on the strain that the Act would place on Louisiana courts. Louisiana has some of the highest personal injury car accident claims filed in the country, and legislators stated that it would add an additional 57 to 87 jury trial claims on an already overcrowded docket.
People, who supported the efforts, believe that the Act would have lower litigation costs for insurers by providing alternatives for legal redress to settle out of court. Therefore, the actions would result in lower premiums over the long-run.
While Louisiana may feel singled out at times, the reality is that the state is experiencing a rate reduction while the rest of the nation is experiencing increases. However, there are other ways that you and your family can reduce your insurance costs even further.
You can use the following strategies to help lower your insurance costs or prevent them from rising:
As you can see, there are several methodologies that you can use to lower your car insurance rates. While they may not be what you wanted, there is a reality to living within one’s ability to afford it. By its very nature, insurance is not cheap for anyone and is a constant source of struggle for those who are feeling its impact.
Companies, like State Farm Insurance, recognize the financial strain that car insurance places on Louisiana families. Over 95 percent of car accident claims never make it to trial since insurance companies prefer to settle out of court.
Therefore, a New Orleans car accident attorney is not responsible for any insurance rate increases. Due process of the law is something that every American should be afforded and holding insurance companies to their policies is not something to overlook.