Insurer Group Asks La. Gov. to Veto Hike in Minimum Insurance Limits

The Property Casualty Insurers Association of America (PCI) announced it has requested that Louisiana Gov. Kathleen Blanco veto SB 233, which the insurer group says would dramatically raise the state’s minimum automobile liability insurance limits and increase auto insurance premiums for more than 40 percent of of the state’s drivers.

Senate Bill 233 would increase the current minimum limits by 2.5 times up to 25,000 for bodily injury liability to one person, $50,000 for bodily injury liability for two or more persons injured in any one accident, and $25,000 for property damage liability. The group suggests that premiums could rise between 30 and 50 percent if the bill is allowed to become law.

According to PCI, the increase in minimum limits acts to create larger targets for plaintiff’s attorneys. With “deeper pockets” of coverage available, there is often added incentive to litigate – and the resulting larger settlements can also result in higher costs for all policyholders, the group said. During legislative debate on this issue, the insurance committee amended the bill to put fewer burdens on the consumer by increasing the limits slowly over time. However, the amendment was stripped away on the floor.

Source: PCI