Should Senior Drivers Face Higher Auto Insurance Rates?

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BEĞENDİM

ABONE OL

News

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Overview of House Bill 258

Lawmakers in Louisiana are evaluating House Bill 258, a legislative proposal designed to impose penalties on insurance companies that increase auto insurance rates solely due to a policyholder reaching the age of 65. According to a report from AM Best, the bill aims to enhance existing protections by introducing fines up to $10,000 for each violation.

Current Regulations and Proposed Enhancements

Under existing state law, insurers are prohibited from raising premiums based strictly on age. However, HB 258 seeks to further safeguard older drivers by adding significant penalties for noncompliance. Advocates of the bill emphasize its necessity, citing Louisiana’s ongoing challenges with high auto insurance premiums.

Industry Opposition

The bill faces resistance from the insurance industry. The American Property Casualty Insurance Association (APCIA) has expressed concerns, arguing that the bill unnecessarily duplicates existing regulations. Hilary Segura, APCIA’s vice president of state government relations, stated, “Insurers are already prohibited from increasing premiums solely on the grounds that a policyholder is 65, and insurers are subject to fines and penalties for market conduct violations.”

Efforts to Reduce Auto Insurance Costs

This legislative move comes as part of broader efforts by Louisiana lawmakers to address the state’s high auto insurance costs. Public discussions on the matter have been ongoing since the fall of 2024. Insurance Commissioner Tim Temple has prioritized lowering auto insurance rates for the year 2025, suggesting that legal reforms might be necessary to achieve this goal.

In 2020, tort reforms were introduced to curb auto insurance rates, but Temple has criticized these reforms as being diluted. He commented, “My understanding is that the courts haven’t had a lot of opportunity for that reform to take effect, if it truly was going to make a difference.” He further noted the mounting pressure on people and businesses due to rising costs.

Efforts to reach Rep. Sylvia Taylor, the sponsor of HB 258, for comments were unsuccessful, according to the report.

Leading Auto Insurers in Louisiana

According to BestLink’s data for 2023, the top five private passenger auto insurers in Louisiana, based on direct premiums written, are State Farm Group (30.48%), Progressive Insurance Group (20.85%), Allstate Insurance Group (12.39%), Berkshire Hathaway Insurance Group (9.85%), and USAA Group (6.16%).