I heard Louisiana automobile insurance is the second highest in the nation and that our premiums are 46 percent higher than the national average. 

How do the insurance companies justify this premium on Louisiana drivers?

What is the Louisiana commissioner of insurance doing to bring Louisiana costs more in line with national averages?

Ileana Ledet, a spokeswoman for the state Department of Insurance, said several factors affect car insurance premiums.

“These include geography, claims history and the fact that many Louisiana drivers are minimally insured, carrying only the bare minimum coverage required by law,” Ledet wrote in an email.

“That means those who do have insurance must also pay to cover the cost of an accident with someone who does not have enough coverage.”

Additionally, she said, auto insurance rates are affected by the number of miles driven; the increase in driver distractions — think: cellphones; the low cost of gasoline; and the high cost to repair vehicles loaded with sophisticated equipment.

“It is important to note that rate increases are not granted as a whole,” Ledet wrote. “Each admitted company must apply for a rate increase individually.”

She said the Insurance Department reviews the rates to ensure they aren’t “excessive, inadequate or unfairly discriminatory.” The companies asking for rate changes, Ledet said, must provide the department with “extensive documentation supporting the change.”

She said consumers should shop around for rates, and she suggested they use the Shop Your Rates tool on the Insurance Department’s website.

For example, six-month rates listed on the site for a 30-year-old married Lake Charles man — with no at-fault accidents or driving violations — who drives a 2017 Toyota Camry 30 miles each day and 15,000 miles a year range from $292 for liability insurance to $5,665 for full coverage.

Insurance-buying tips from the site:

“When you start calling for price quotes, be ready to answer questions about your driving history … .”

“Ask questions about how your policy works. Since you will be paying for your policy, you have a right to know all the policy details.”

“Compare policies and choose the one best suited to your situation.”

For more info: www.ldi.la.gov/online-services/shop-your-rates.

 

 

The Informer answers questions from readers each Sunday, Monday and Wednesday. It is researched and written by Andrew Perzo, an American Press staff writer. To ask a question, call 494-4098 and leave voice mail, or email informer@americanpress.com.