Louisiana Drivers Mad That Their Car Insurance Premiums Are Sky High
Many drivers in the state of Louisiana are upset and frustrated because their auto insurance premiums are so high. The problem has been going on since even before Hurricane Katrina struck the Gulf Coast.
A study has revealed that on average, drivers in Louisiana pay approximately $2,536 dollars per year on their auto insurance premiums. In comparison, drivers in the state of Maine pay approximately $889 dollars each year for the same auto insurance coverage.
One big problem is the number of uninsured people in the state. Financial issues have caused many drivers to be unable to afford their auto insurance premiums any longer. The more people without car insurance coverage, the more money needs to be raised from increasing auto insurance premiums from other drivers. It is unfair but sadly it is happening all the time.
There is a limited number of auto insurance providers in the state. If there is less competition for drivers, then auto insurance premiums will be higher. If more insurance providers can come to the state then maybe premium rates will level off soon.
Hurricane Katrina ravaged the Gulf Coast when George W. Bush was president but still the natural disaster has left behind residual damage. The problem is that a massive amount of auto insurance claims were filed during that time period for both Hurricane Katrina and Hurricane Katrina. When a natural disaster causes billions of dollars in claims in one day, it can cause a ripple effect for insurance companies for years to come. Many insurers increased their premium rates to lessen the financial impact that they felt at the time.
The state of Louisiana is located at below sea level. This means that it is more likely to be hit by hurricanes and other natural disasters. When a person lives in an area like this, their premium rates will be higher. It is basically like living in a neighborhood where car theft is rampant.
Insurers want to reduce the amount of risk and sadly Louisiana drivers are paying for it. One great idea that might help is that the state has a mandatory auto insurance law that states that every driver must carry liability coverage on their vehicle at all times. If a driver does not follow the law and gets pulled over, then they cannot renew their driver’s license until they become insured. This can be a help and reduce the number of uninsured drivers in the state.
Another issue is that there are many incidents involving drunk drivers in the state. The state allows people to go and visit drive through bars. This is very dangerous because people who are drunk and drive can injure or kill themselves or someone else. When there are more DUI related accidents in a state then drivers will have to absorb the additional costs by having higher premiums. It would be a great idea if the State Senate would not allow drive through bars to still be operated because they pose a danger to everyone on the road.
Louisiana drivers are mad because they feel like they are paying the price for the lack of work being done by the Legislature. More needs to be done to reduce premium rates. This will help to make sure that people follow the law and are not feeling the pain when they go to write their bill payments each month.