August 2nd, 2010 | |
Posted in News
After Hurricane Katrine auto insurance rates in New Orleans have climbed to the highest in its history and also the highest in the nation with the average driver paying an annual premium of $2,510.
The data confirms a trend thoroughly documented by the National Association of Insurance Commissioners.
Louisiana average auto insurance premiums and expenditures have worsened since 2005. In 2005 Louisiana ranked 4th in the nation and in 2006 they moved up to third place and in 2007 they hit 2nd place in the entire country with an average auto insurance expenditures at $1,262 as reported by the NAIC.
Louisiana drivers also pay much higher rates than their peers in nearby states. In Mississippi, drivers paid an average of $814. In Texas, with its large cities and crowded freeways, the average was $955, still 24 percent lower than Louisiana.
Many people have different ideas on why the rates have grown to be so high. Most credit the raise to Louisiana litigation’s, poor drivers, grand theft auto and more crime.
Insurance Commissioner Jim Donelon said the problem of high auto insurance rates in the state is not new; the state has been in the top 10 of car insurance prices for at least the two decades he has been monitoring the numbers. More »
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