Regardless of sturdy 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 response to the Insurance Research Council (IRC).
In 2022, the typical annual premium expenditure per car for auto insurance coverage in Louisiana was $1,588, which is sort of 40 % above the nationwide common and practically 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 leads to a decrease expenditure share of earnings (2.49 %). The Sunshine State will not be included within the IRC report as a result of it’s the solely no-fault jurisdiction among the many Southern states, a indisputable 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 an entire. 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 price drivers as a better tendency to file harm claims when an accident happens, a excessive price of underinsured motorists, and a excessive price of declare litigation. Earlier IRC declare analysis has pointed to excessive charges of legal professional involvement in auto harm claims within the state.
As well as, Louisiana obtained 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.
Study Extra:
Despite Improvements, Louisiana Is Still Least Affordable State for Auto Insurance
Who’s Financing Legal System Abuse? Louisianans Need to Know
Louisiana Still Least Affordable State for Personal Auto, Homeowners Insurance
Louisiana Litigation Funding Reform Vetoed; AOB Ban, Insurer Incentive Boost Make It Into Law
Louisiana’s Insurance Woes Worsen as Florida Works to Fix Its Problems
Louisiana Insurance Regulator Issues Cease & Desist Order to Texas Law Firm
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