Requires insurers provide coverage for the temporary use of a motor vehicle not owned by the insured. (8/1/22)
The implementation of SB 122 will have a direct influence on how automobile insurance policies in Louisiana are structured, particularly with regards to temporary and non-owned vehicle usage. By ensuring that bodily injury recovery limits cannot be less than the highest policy limit, this law enhances consumer protection against inadequate coverage. This legislative action could potentially lead to increased premiums as insurers adjust their risk assessments and policy offerings to comply with the new requirements.
Senate Bill 122, introduced by Senator Talbot, aims to amend existing laws regarding automobile insurance by requiring insurers to provide coverage for the temporary use of motor vehicles not owned by the insured. As of August 1, 2022, the bill retains present law while enhancing provisions for non-owned vehicles in custody or operation by the insured or their family members, ensuring coverage can’t be limited to less than the highest amount provided in the policy for respective coverage. This change is significant to individuals who may use vehicles that are temporarily available to them and instills stronger protections regarding liable coverage amounts during such use.
The sentiment surrounding SB 122 appears largely supportive among proponents who view it as a positive step towards enhancing consumer protection and providing clearer coverage for temporary vehicle use. However, there may also be some concerns from insurance providers regarding potential increases in liability and the impact on policy formulations. Overall, discussions reflect a balanced view with recognition of both consumer rights and the financial implications for insurance companies.
Notable points of contention regarding SB 122 include the balance between comprehensive coverage for insured individuals and the risk management concerns from insurers. Some may argue that by mandating higher coverage amounts for temporary use, insurers might respond with higher premiums or restrictive policy changes that could limit options for consumers. The bill’s potential effects on insurance costs and its practical implications for temporary vehicle usage are key focal points in discussions surrounding the bill.