New Task Force to Address High Auto Insurance Rates Louisiana

A new task force created to investigate the high cost of auto insurance in Louisiana held its first meeting on Aug. 21, the Louisiana Department of Insurance reported.

The 2018 Regular Session of the Louisiana Legislature passed a House Concurrent Resolution (HCR 47) and Senate Concurrent Resolution (SCR 55) urging and requesting the department to assemble a task force to address the high cost of auto insurance.

Subsequently, the Louisiana High Auto Rates Task Force was formed by Insurance Commissioner James Donelon. After investigating the state’s auto insurance market, the task force will make recommendations to the legislature for actions to lower rates.

“High auto insurance rates have plagued Louisiana families for years, and while we’ve come up with some band-aids, we haven’t seen any silver bullet solutions,” Donelon said in a departmental release. “I’m hopeful that recommendations made by this task force will be successful where previous efforts have failed.”

Commissioner Donelon appointed industry and community leaders to serve as members of the task force including Representative Kirk Talbot, chairman; Senator John Smith, vice chairman; Senator Wesley Bishop; Rich Piazza, Louisiana Department of Insurance and representatives from each of the following: Property Casualty Insurers Association of America; American Insurance Association; National Association of Mutual Insurance Companies; Professional Insurance Agents of Louisiana; Louisiana Association of Justices; and Louisiana Motor Transport Association Inc.

Commercial auto rates in Louisiana rose 5.6 percent in 2017 and 2.8 percent in 2016, according to the insurance department. Private passenger auto rates increased 9.0 percent last year, following an 8.7 percent increase the previous year, the 2017-2018 Annual Report for the Louisiana Property and Casualty Insurance Commission (LPCIC) shows. The average auto premium per vehicle in Louisiana is $1,921; the New Orleans and Baton Rouge areas have the highest auto rates in the state.