Wednesday, April 6, 2022

Car Insurance Rates


Car Insurance Rates

Written by Jim “Gymbeaux” Brown April 6, 2022


Take a look at the following site that ranks States by the average cost of car insurance.  Amongst all the states, Louisiana is the most expensive state with an average auto insurance premium of $2,839 per year, a 19% increase in rates from 2020.  If you go to the site, you will see that the Number 2 state on the list is Michigan at $2112, not even close to Louisiana.  Check the site for yourself:

Why is Louisiana at the top of the list?  The website gives you the criteria as to how the states are ranked.  One reason could be the number of insurance claims submitted.  The following statement from the website shines light on this belief: 

“In Louisiana, uninsured and underinsured drivers combined with easy lawsuits are the major factors in pushing up rates. According to the III, it is estimated that 11.7% of drivers in the state are cruising the roads uninsured.” 

I believe there is another reason, attorneys which fits in very nicely to the “easy lawsuits” included in the above excerpt!  I did my own study of sorts by watching the 12:00 pm broadcast of the local news.  There are 3 television channels in the New Orleans area so I assume that the same people advertise on all three channels.  During the period 12:00 pm to 12:30 pm on just one local news channel, THIRTEEN advertisements appeared promoting what attorneys could do for you.  Of the thirteen, three appeared more than once and one appeared three times.  I have been watching this for several months and there must be at least an additional 10 attorneys that run ads on the local networks.  Most of them suggest that if you were in accident and hurt, call them.  One advertises that if you were in an accident with a “truck with a name on it”, call them.  This suggests that since the “name” represents a commercial business, they have “deep pockets” and by that, I mean they would probably prefer to settle than to go to court because they have deep pocket insurance policies. 

The only people with the “deep pockets” are the attorneys who are making a lot of money on insurance claims.  How else could they possibly justify the cost of running television advertisements during prime watching hours? I am not suggesting that these TV attorneys are involved in “staged auto accidents” but there are people including attorneys and physicians who are.  Check this statement out:  

The latest indictment brings the number of individuals charged in the investigation to 47. Going back to 2020, there have been 30 guilty pleas and the first sentences to jail or home detention for those who copped a plea. 

FORTY-SEVEN people with THIRTY already pleading guilty.  (As of April 5, there are now THRITY-TWO that have pled guilty or found guilty.)  You may be reading this and thanking God that you don’t live in Louisiana or Michigan or anyone of the top States listed.  What happens in Louisiana can and probably will eventually happen in every state.  Part of the high auto insurance costs relate to vandalism and car theft.  Crime is rampant in New Orleans.  The last report I saw indicated there were over 103 carjackings just in the month of March.  This all answers the question, why are car insurance rates so high in Louisiana?  Let me count the reasons: 

  1. Television attorneys
  2. Rampant Crime
  3. Stages auto accidents
  4. Political Leadership that either is unable to address the crime problem or just won’t address the crime problem
Citizens of Louisiana or any other State can only control #4, politicians.  We elect them but do we really hold them accountable for the actions they take or the actions they fail to take.  I do not believe we do.  Most people do not vote for the actual person as much as they vote for the small letter (r) or (d) or (i) that follows the person’s name and therein lies reason #5 NOT listed above, partisan politics.  In Louisiana we actually elect the Insurance Commissioner.  We also elect the Governor and our local Mayors.  I am not sure the Insurance Commissioner can do much about the onslaught of crime in our major cities but the Governor and Mayor should but don’t.  They either do not want to truly address the root causes of the people committing the crimes or the obscene laws that release far too many repeat criminals back onto the streets.  The real question of violent crime is in the hands of the voters but the voters don’t seem to care about crime when they continually elect and reelect the same people.  That is the 2022 definition of insanity.  Reelect the same people but this time, expecting different results.  How is that working out for everyone? 






For all the rest of the 49 states, don’t laugh, you are probably next!

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