Insurance Commissioner Jim Donelon breaks down the legislation he supports that are aimed at slicing auto insurance rates. Donelon says he wants to lower jury thresholds to $5,000. In the 13 states that have a jury threshold, Louisiana’s is the highest at $50,000.
“It results in the insurers doing business in our state handing out $15,000 checks like cotton candy to get rid of lawsuits,” said Donelon.
The second highest is Maryland at $15,000, with the other eleven having a threshold of $5,000.
Donelon supports a provision lengthening the time to file suit. Louisiana has the shortest time in the nation to file a lawsuit before losing the right to do so at one year versus many other states at two years. Another provision looks to allow for a reduction in damages from collateral sources.
“Anything that we are different and unique than the rest of the 49 states in, let’s take a close look at it and do something different when you are paying through the nose for the cost of auto insurance,” said Donelon.
If someone isn’t wearing a seatbelt as required by state law, Donelon believes they are not mitigating their damages. Donelon is also supporting legislation to allow transparency in seatbelt use in a trial, lower payouts from insurance companies.
“If you are the victim of an accident and you are not wearing your seatbelt, that fact cannot be made known under our law to the judge or the jury that was trying that case,” said Donelon.
