Louisiana House Bill HR41

Louisiana 2018 2nd Special Session

• Introduced: 6/3/18

Caption

Urges and requests the office of motor vehicles create a task force to study and report on the high automobile insurance rates in the state

Impact

If implemented, HR41 could lead to substantial changes in Louisiana's automotive insurance landscape by addressing the factors contributing to the state's disproportionately high rates compared to the national average. This bill highlights ongoing issues, such as the departure of insurance companies from the state and the rising premiums that some drivers face. The legislative and public discussions surrounding the bill emphasize the need for comprehensive solutions to make automobile insurance more manageable for residents.

Summary

House Resolution 41 urges and requests the Louisiana Department of Public Safety to create a task force tasked with investigating the reasons behind the high automobile insurance rates in the state. Given that Louisiana has recently ranked as the second most expensive state for automobile insurance, with average annual premiums approaching $2,000, there is a significant concern among residents and lawmakers alike regarding the affordability and accessibility of automobile insurance. The task force is expected to submit a report with findings and potential legislative recommendations by March 1, 2019.

Sentiment

The sentiment around HR41 appears to be cautiously optimistic. Proponents of the bill see it as a necessary step toward understanding and addressing the critical issue of high insurance rates. They anticipate that a dedicated task force will provide valuable insights that could ultimately lead to more favorable legislation. Conversely, there remains skepticism about whether the task force will produce actionable results, as previous attempts to reform the automobile insurance market have faced challenges and legislative hurdles.

Contention

Notable points of contention regarding HR41 include concerns over whether the task force will be able to effectively identify the root causes behind the high insurance rates and whether its recommendations will be taken seriously by lawmakers. Additionally, there are fears that simply studying the issue may not be sufficient without a commitment to implement the necessary reforms. Some residents are concerned that the high rates disproportionately affect low-income individuals who may struggle to find affordable coverage options.