About 12,000 drivers who have auto insurance through Allstate will see a decrease on their auto insurance premium next year. Insurance Commissioner Tim Temple says the has approved a 7% rate decrease for Allstate North American Insurance Company and a 15% decrease for Encompass Insurance Company of America’s National General program. Temple says this good news.
“Another example of the industry acknowledging Louisiana is committed and focused on making Louisiana a more competitive place, both consumers and insurance companies,” Temple said.
ANAIC and Encompass are both Allstate companies. Temple says the recent tort reform efforts are showing insurance providers that the state is committed to creating a healthier market for both consumers and insurers.
Temple says the insurance industry has told him if Louisiana can decrease the frivolous lawsuits and outrageous settlements it will result in lower auto insurance rates.
“When losses go down, or don’t come in as forecast, when they’re lower than forecast, then the company is able to charge less premium the following year,” Temple explained.
Temple says there are signs auto insurance rates are starting to come down for drivers, but more work is needed to address commercial auto insurance.
“You know, we need to target more legislation that will be laser-focused on that sector, so we can try and bring relief to the businesses as well as to the individual consumers,” Temple said.
Expect to see more auto insurance reform legislation when lawmakers meet for the regular session in the spring.
