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VIDEO: Louisiana House of Representatives Votes NO on Lowering Insurance Rates

Rep. Robby Carter authored HB 252, a consumer-friendly bill that prohibits insurance companies from factoring advertising expenses into premiums for Louisiana policyholders.

HB 252 would have saved Louisiana families and small businesses money. But led by Representatives Mike Huval, Larry Frieman, and Alan Seabaugh, the Louisiana House of Representatives voted NO on the bill, allowing insurance companies to continue passing the high cost of their expensive ads on to Louisiana consumers.

Big insurance companies spend billions every year on advertising. For example, Progressive, Geico, State Farm, and All-State spent nearly $5 billion on advertising in 2022. Currently, Louisiana law allows big insurance companies to pass on the cost of their multi-billion dollar advertisements to consumers. As a result, Louisianans are paying for expensive Super Bowl ads that feature Flo, the Gecko, Jake, Mayhem, and the Emu.

Louisiana desperately needs to elect representatives that will fight for real insurance reforms that protect policyholders, increase competition, lower costs, and hold insurance companies accountable.

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By Ben Riggs • February 16, 2024

Insurance Industry: "Credit Scores" Among Reasons for Louisiana's Rising Insurance Costs. A new report shows that auto insurance rates are skyrocketing, rising by 26% across the U.S. On average, Louisiana drivers pay $2,909 annually, roughly 6.53% of their income for auto insurance. Wayne Watley at Watley Insurance Group lists “credit scores” among the reasons for Louisiana’s rising auto insurance costs, including poor roads and uninsured motorists. Mr. Watley goes on to say, “It’s a challenge because we’re not one of the richest states, but we have some of the highest premiums.” He is correct—and the data backs him up. Insurance companies use credit scores to determine insurance rates for policyholders. Louisiana ranks 48th in median household income and 49th in average credit score . According to a recent study , safe drivers in Louisiana with poor credit pay 111% more than safe drivers with excellent credit ($1,505 / $713). Consequently, Louisiana has the second-highest auto insurance rates in the nation, which leads to more uninsured motorists, another primary cause of higher insurance rates. The use of credit scores in rate setting also creates perverse incentive structures that make Louisiana roads less safe. In Louisiana, safe drivers with poor credit pay an average of $905 more than drivers with a DWI and excellent credit ($3,548 / $2,643). Meanwhile, traffic fatalities increased by 21% from 2019 to 2022 in Louisiana, and the fatality rate per 100 million vehicle miles traveled increased by 18%, according to KPLC . Louisiana desperately needs real insurance reforms that lower costs, protect consumers, hold insurers accountable, and make our roads safer.