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LABI seeks reform to address state’s auto-insurance crisis


March 28, 2019
By Carrie Bradon
Originally Posted on The Louisiana Record

According to a Fox News report, Louisiana lawmakers plan to address the state's notoriously high auto-insurance rates in the next legislative session. 

Louisiana has long been one of the most costly U.S. states for auto insurance, but when you compare the present income disparity to today's insurance rates, the Pelican State becomes the least affordable in the country. Due to these high rates, many drivers are underinsured or altogether uninsured, which can lead to chaos in the courtroom when these underinsured drivers seek large settlements to cover their damages from accidents.

The Louisiana Association of Business and Industry (LABI) commented on this ongoing crisis and the need for change.

“We’re grateful for the spotlight on this urgent issue that’s clearly affecting citizens across Louisiana,” Lauren Chauvin, LABI Director of Civil Justice Reform told Louisiana Record. 

Adding to the insurance situation is the fact that Louisiana has a very short statute of limitations when it comes to filing a complaint — just one year, which is considerably shorter than most other states that have a period of two to six years. This abbreviated time period often results in a scramble to get into court after an accident in time to get a case heard.

Chauvin is hopeful that reform will come soon and that it will bring the initiatives required to stand the test of time. 

“There are many options for legislative solutions, some new initiatives as well as continued efforts for common-sense legislation that have been defeated in recent years,” Chauvin said.

Until those reforms become realities, however, Chauvin said that the current system continues to maintain a perfect climate for perpetuating the negative views brought upon Louisiana’s legal landscape. 

“There’s a legal framework keeping a sue-happy environment in place, and with insurance costs driving companies out of business, the time to act is now,” Chauvin said.