Independent Insurance Agents and Brokers of Louisiana head Jeff Albright says it may take a few years for the full impact of tort reform passed in the Legislature to be felt via lower auto insurance rates.
Albright says the law takes effect in 2021, and “In 2021 I think it will have a modest impact, but I think in year two and year three you will start to see some substantial improvement.”
Insurance Commissioner Jim Donelon predicted that the new tort law would lower rates by up to 25 percent.
Albright says Louisiana drivers make twice as many injury claims as the national average despite not have twice as many wrecks.
“That is a direct reflection of our court system and that is why tort reform is so important,” says Albright.
Louisiana has the 2nd highest rates in the nation and is expected to rise to number one next year. Albright says that is because Michigan, who is 1st, passed tort reform legislation several years ago that is now taking effect.
Albright also says 45 percent of Louisiana drivers carry the minimum limit 15,000 dollars of insurance, which is why the law lowers the jury trial threshold to 10,000 dollars.
“Those cases involving a significant portion of the population never get to go to a jury,” says Albright.
The previous threshold was 50,000 dollars.
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