Certain politicians want the cost of going to court to be more expensive than the claim itself. That is why these politicians want new laws to force even small claims to be tried by a jury. They know that the high cost of jury trials will deter persons from seeking justice. Why? They SAY that by cost blocking the courthouse doors that auto rates may come down. But here’s the truth:
FACT #1: Without cost-effective access to courts, insurance companies will not pay any or will pay as little as possible on even legitimate claims.
FACT #2: These politicians refuse to include in their proposed laws a requirement that the insurance companies lower their rates.
FACT #3: These politicians refuse to require Insurance Commissioner Donelon to require insurers to fully disclose the basis behind their high rates. In fact, these politicians have allowed Donelon to let the insurance companies charge women, particularly widows, people with lower credit scores, and people with lower income higher premiums even with clean driving records.
The solution for Louisiana? Market and regulatory practices which increase competition amongst auto insurers and require total transparency for the setting of all premiums. This works in other states where premiums remain reasonable and low. Please see former Texas Insurance Commissioner J. Robert Hunter’s excellent 2015 article entitled “Reducing Auto Insurance rates: what will work in Louisiana” at the below link offering both market and regulatory solutions that other states successfully use and Donelon and Company reject:
Let your State Representative and Senator know that you are tired of them protecting the insurance companies, their high rates, and their Commissioner- you want real solutions! Making access to courts cost prohibitive is not conservative or just. The only winners are the insurance companies who fund their elections at your expense.