A package of auto insurance reform bills went into effect on January 1st. Can they reduce auto insurance premiums? Independent Insurance Agents and Brokers of Louisiana CEO Ben Albright says the modified comparative fault law should help to reduce excessive claims cost. Albright says the law prevents drivers responsible for at least 51% of an accident from receiving a damage award to cover their injuries.
“So, you can’t cause the accident and then go sue to recover your injuries, right? Which I think makes sense. But was not the case before this law,” Albright explained.
Albright says the other new laws that went into effect on New Year’s Day are nice to have, but they’re not significant. He says Louisiana still needs to reform how damages are awarded in car crashes with significant medical costs.
“The one big thing that we still need to get done, is to rein in excessive medical costs in the system,” Albright said.
Lawmakers will have the opportunity to pass more tort reform legislation when it comes to insurance cases. Albright expects insurance reform legislation will be filed, but whether they pass is another story.
“Whether there is the political will to move those bills, whether the governor is interested in signing any of those bills,” Albright said.