Regardless of robust earnings 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 the US, in accordance with the Insurance coverage Analysis Council (IRC).
In 2022, the common annual premium expenditure per automobile for auto insurance coverage in Louisiana was $1,588, which is almost 40 % above the nationwide common and almost double that of the lowest-cost Southern state of North Carolina ($840), the IRC report says. Louisiana’s spending accounted for two.67 % of the median family earnings within the state.
Florida’s common annual premium expenditures, at $1,625, exceed Louisiana’s, however the state is barely extra inexpensive; Florida’s greater median earnings ends in a decrease expenditure share of earnings (2.49 %). The Sunshine State just isn’t included within the IRC report as a result of it’s the solely no-fault jurisdiction among the many Southern states, a undeniable fact that skews some comparisons.
All of the Southern states had median family earnings 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 earnings was 35 % beneath the U.S. median.
Along with low common family incomes, Louisiana’s affordability points stem from such value drivers as a better tendency to file damage claims when an accident happens, a excessive fee of underinsured motorists, and a excessive fee of declare litigation. Earlier IRC declare analysis has pointed to excessive charges of legal professional involvement in auto damage claims within the state.
As well as, Louisiana acquired 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” listing revealed 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’s Insurance coverage Woes Worsen as Florida Works to Repair Its Issues
Louisiana Insurance coverage Regulator Points Stop & Desist Order to Texas Regulation Agency
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