Candidates for Insurance Commissioner Suggest Different Solutions for High Auto Insurance Rates

Position of Louisiana Insurance Commissioner needs a new man to handle insurance-related issues and the race for that becomes quite competitive in this election’s season. Incumbent Jim Donelon has a challenger Tim Temple who mostly discusses high insurance rates.

An average $2,298 paid by Louisianans in 2019 for annual vehicle insurance premiums, as Insure.com informs. The highest paying on average rate are Michiganians.

On September 16 Temple said Donelon is the architect of the worst insurance market in America. A forum held by the Baton Rouge Press Club included that speech. Temple, former insurance agent and executive, has a solution for raising car insurance rates by inviting new insurance companies by letting them increase rates twice a year. He says Donelon will only allow insurers to raise the rates once a year.

Temple also says: “We need new blood, new companies in the state of Louisiana – not just focusing on a handful that write today. Competition is what drives rates, not legislative mandates.”

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If the rule changes insurance companies that do not write policies in Lousiana have indicated to him they would return to the state. He disagrees with a situation when prices fall if more insurers come to the Lousiana market.

However, Donelon opposes that solution by saying the legislature would never allow the change. He said they’re not going to require that he approves rate increases every six months just to please insurance companies that want to sneak rate increases by in half-bites. Then he suggests a plan that would limit attorneys’ ability to file a lawsuit after an accident. He also added that it’s our broken legal system that is the long-time cause of our insurance rates being as high as they are in this state.

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Both of them are Republicans and the insurance industry donating both of them.

Donelon claims that his leadership is working by mentioning State Farm and Progressive rate decrease as proof. Temple said, under his leadership insurers could use technology to set premiums for individuals instead of relying on characteristics like gender, credit score, and employment status.

12th of October is election day.

Source: WAFB

Anthony Gonzales

Biotech, Tech, and Crypto reporter Anthony Gonzales brings 3 years of experience in helping grassroots, mid-sized organizations and large institutions strengthen their management and resource generating capacities and effectively plan for the future. He is also a mentor and professional advisor to artists working in all disciplines. He is the gold medalist from St. Marco University of Science and Technology in the Bachelors of Financial Management as well.