Donelon echoed the recent recommendations of the Louisiana Property and Casualty Insurance Commission for reducing claims. The main recommendations are:
· Lower the jury trial threshold from the current $50,000 to $10,000
· Bar “pain and suffering” for uninsured motorists
· Clarify that uninsured motorist claims are to be settled just like bodily injury claims, i.e., the insurer is not required to make undisputed tenders prior to a determination of full and final uninsured motorist settlement value upon agreement by the parties or when a judgment is entered
Donelon also expressed views about considering the “no-pay, no-play” law by the state Legislature as a part of the auto liability reform package in the late 1990s. Under the “no-pay, no-play” provision, drivers who didn’t buy insurance have to forgo the first $15,000 in damages. He expects an effort to take all the pain-and-suffering or non-economic damages off the table.
According to recent estimates of Insurance Information Institute, there are approximately 13% uninsured motorists on Louisiana roads. This number is slightly under the national average of 13.8% but still presents a major threat to uninsured and insured drivers alike.
To reduce the percentage of uninsured drivers in Louisiana, the state government has started imposing fines on uninsured motorists for driving without car insurance. In June 2014, Governor Bobby Jindal signed a legislation (Act 641) which came into effect in July. Under this new law, uninsured vehicles will be impounded and licences and registrations may be revoked. The new law also increases the reinstatement charge for these products and establishes a separate minimum $75 fine for driving without auto insurance.
|Uninsured Period||Revised Fee||Old Fee|
|Less than 30 days||$100||$25|
|91 days or more||$500||$200|
|Notice of violation 1st offense:||$100||$50|
|Notice of violation 2nd offense:||$250||$150|
Source: Louisiana Legislative Fiscal Office
All these initiatives are expected to reduce the percentage of uninsured motorists in the long run and to help reduce premiums.
Uautoinsurance.com compiled average car insurance rates of all the largest cities in the US. Rates are based on full coverage for a married, 38-year-old male (median age of the US) who averagely commutes 7,500 miles to work per year. Our hypothetical driver has a clean record and is insuring a 2014 Toyota Camry LE 4 Cyl 4 Door Sedan.
Policy characteristics include –
- $100k / $300k Bodily Injury (BI); $50k Property Damage; $100k / $300k Uninsured Motorist BI Coverage
- $50k Uninsured Motorist Property Damage Coverage; $500 Deductible; $75 Towing Coverage; $600 Rental Car Coverage