In 2020, when lawmakers approved legislation that changed how the courts would handle lawsuits involving car accidents, supporters said it would lead to lower auto insurance rates. But Insurance Commissioner Jim Donelon said during a task force meeting on Affordable Automobile Insurance that rates are actually going up.
“Rates are going up this year actually, 2% to date through October,” said Donelon.
The 2020 tort reform legislation will lead to more jury trials, resulting in lower damages paid out to plaintiffs and the measure also caps certain medical expenses. River Ridge Senator Kirk Talbot says the law went into effect this year and it has to have an impact on rates.
“It might take eight months, nine months to even file a lawsuit so it’s going take that component to really show up later on,” said Talbot.
Donelon says auto insurance rates stayed relatively flat from 2018 to 2020, but they are on the rise this year and an increase in traffic fatalities over last year is a potential cause.
“And some of that is the result of more miles being driven this year as we come out of the pandemic, but it’s also a continuing effect of distracted driving,” said Donelon.
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