Provides for minimum collision coverage amounts of uninsured motorist insurance. (8/15/10)
Impact
The implementation of SB 663 is expected to reinforce the insurance coverage standards in Louisiana, thereby providing greater assurance to vehicle owners. By establishing a baseline for uninsured motorist coverage, the bill aims to improve compensation avenues for policyholders who may otherwise find themselves with little recourse after an accident involving an uninsured vehicle. Additionally, the stipulation for a deductible of $250 enhances clarity in terms of coverage expectations and potential costs incurred by policyholders.
Summary
Senate Bill 663 aims to amend existing laws regarding uninsured motorist coverage in Louisiana by establishing minimum collision coverage amounts. Specifically, the bill mandates that insurers who provide automobile liability policies must offer coverage against damages from uninsured vehicles, corresponding to either the actual cash value of the vehicle or a minimum amount determined by state law. This adjustment is intended to enhance the protection for motorists who suffer property damage due to collisions with uninsured drivers.
Sentiment
The general sentiment surrounding SB 663 appears to be supportive among insurance advocates and consumer protection groups, who view it as a necessary enhancement to existing state motor vehicle laws. Proponents argue that the bill improves accountability and provides necessary financial protection for motorists. However, concerns may be raised regarding the implications this may have on insurance premiums, as increased coverage requirements could potentially lead to higher costs for consumers.
Contention
Notable points of contention include discussions around how the new minimum coverage amounts may affect the overall cost of insurance premiums for consumers. Some stakeholders express worry that while the bill strengthens protections for drivers, it may also inadvertently lead to increased costs that could burden motorists. Moreover, the bill may face scrutiny from insurance companies regarding its implementation and how these new rules may complicate existing insurance frameworks.