Committees focusing how to reduce Louisiana auto insurance rates

To address the state’s auto insurance crisis four legislative committees met this week. Insurance Commissioner Tim Temple said the industry is simple at its core in the sense that it’s dollar in, dollar out and if they pay more than a dollar going out, rates must increase.

“Right now, in Louisiana, I would say that we have excessive bodily injuries filed in Louisiana, and we have excessive litigation on those bodily injuries,” said Temple.

Temple said the committees are collectively looking at what the cost drivers are and then they’ll examine the best ways to address those factors. He said it’s a matter of bringing all the interested parties together to find answers.

“The citizens of Louisiana deserve that all of these groups collectively sit at the table, agree what the issues are, and then work towards common sense solutions,” said Temple.

Compared to other states Louisiana is twice the national average when it comes to bodily injury claims. Temple said there needs to be tort reform for both auto and property insurance.

He expressed his disappointment over Governor Landry’s veto of the collateral source doctrine. Supporters of that measure say it would help hold down the amount of damages a jury can award a person involved in a car crash. Landry argued the measure was not consumer friendly.

“We all are focused on consumer protection. I’m focused on the consumer being able to afford insurance. At the end of the day if the consumer can’t afford the product, then how are we protecting the consumer?” Temple questioned.

Temple said he plans to meet with Landry to discuss the possibility of a special session for auto insurance.