House insurance committee kills effort to lower car insurance rates – The Observer
Last week, the Louisiana House Insurance Committee killed Rep. Edmond Jordan’s House Bill 351, a bill to cut auto insurance rates by banning the use of credit scoring and setting occupancy rates. .
Insurance Committee Chairman Mike Huval and Representatives Mary Dubuisson, Kathy Edmonston, Gave Firment, Larry Frieman, Paul Hollis and John Illg all voted against the bill to cut car insurance rates. Representatives Edmond Jordan, Delisha Boyd, Chad Brown, Cedric Glover, Kyle Green, Sherman Mack and Matt Willard all voted in favour. Because the vote was a 7-7 tie, the bill failed to make it out of committee.
Insurers use non-driving factors like credit score and occupation to overcharge good drivers and give discounts to wealthy customers they think could buy other types of insurance, like homeowners insurance , life insurance and boat insurance.
In many cases, your credit score is actually After important than your driving record. Consumer Reports magazine found that a Louisianan with poor credit but a perfect driving record pays nearly $1,000 more per year than a Louisianan with excellent credit and a DWI conviction.
As a result, good drivers with poor credit or blue-collar jobs are hit with steep penalties, discouraging good driving and leaving nearly half of Louisianans uninsured or underinsured, which harms health. of the insurance market and increases everyone’s rates. .
Shamefully but unsurprisingly, Louisiana Insurance Commissioner Jim Donelon joined insurance lobbyists in testifying against the bill, despite raising the issue of the large number of drivers himself. uninsured and underinsured in Louisiana many times in the past. The commissioner has always sided with the insurance industry, with a few exceptions.
After the failure of House Bill 351, another effort to lower auto rates was also defeated by a tie vote. Rep. Robby Carter’s Bill 116, which would have prevented insurance companies from charging policyholders for their advertising in their base insurance rates, was defeated by President Huval and Reps. Dubuisson, Edmonston, Firment, Hollis and Ilg. Advertisements from insurance companies are almost inevitable, and Louisiana allows these big companies to charge our drivers for these billions of dollars in advertisements.
See a statement from Real Reform Louisiana Executive Director Eric Holl below:
“Louisiana has the highest auto insurance rates in the country, but our legislators continue to let the big insurance companies write our insurance laws. Corporate lobbyists and the insurance commissioner told us that tort reform would cut our rates by 25%, but our rates continue to rise while insurance companies rake in billions in profits. Despite the opposition of President Huval, the insurance commissioner and so many members of the insurance commission, we will never stop fighting for a real reform of motor insurance that will lower rates.