Hello, fellow Louisianians,
This is Dan Burghardt from Dan Burghardt Insurance. Today, I’m writing to address a topic that is on many of our minds: the rising car insurance rates in our beloved state. It’s imperative to understand the factors driving these changes and to know the choices available to you.
1. The State of Car Insurance in Louisiana: Firstly, State Farm, one of the largest car insurance providers, has recently been given the nod to increase its car insurance rates by a staggering 17.3%. This move is set to impact over a million drivers in Louisiana. Unfortunately, they’re not alone; several insurers have been approved for similar rate increases.
2. Why the Sudden Surge? There are a multitude of reasons behind this rate surge. Primarily, the rise is attributed to inflation and the escalating labor and repair costs. Modern cars are equipped with advanced, sophisticated equipment, which can be expensive to repair or replace. This technological advancement, while fantastic for safety and convenience, has an impact on insurance premiums.
3. Where Does Louisiana Stand Nationally? To put things in perspective, Louisiana holds the rather unenviable position of being second on the list of states with the most expensive car insurance premiums. Here’s a quick snapshot:
- Florida: $2,560
- Louisiana: $2,546
- Delaware: $2,137
- Michigan: $2,133
- California: $2,115
4. The Underlying Factors: Several key factors contribute to Louisiana’s rising rates:
- A high number of uninsured drivers.
- Many drivers carrying only the minimum coverage.
- The prevalent issue of distracted driving.
- An unexpected correlation with gas prices: When they drop, we tend to drive more, leading to more accidents.
- And lastly, our state’s challenging legal environment, especially prevalent in metro areas like New Orleans and Baton Rouge.
5. A Deeper Dive into the Numbers: It’s alarming to know that 40% of our state’s drivers get by with just the minimum allowable coverage. Worse still, 15% of our drivers are completely uninsured. If you’re residing in metro areas like New Orleans or Baton Rouge, you’re probably feeling the pinch even more, with rates averaging about 25% higher than other areas.
6. What Can You Do? If your car insurance rates have skyrocketed, don’t lose hope. It might be time to shop around for a new policy. Furthermore, if you’re a safe driver or someone who doesn’t drive frequently, consider “usage-based insurance.” This type of policy uses odometer readings or in-vehicle devices to measure car usage, potentially saving you money.
In Conclusion: The current insurance landscape in Louisiana is undoubtedly challenging. However, by staying informed and being proactive, you can navigate these turbulent waters. Always remember, at Dan Burghardt Insurance, we’re here to guide, assist, and provide the best possible solutions for your insurance needs.
Stay safe and drive responsibly!
Dan Burghardt Owner, Dan Burghardt Insurance