Auto insurance rates are coming down in the state of Louisiana, although not as much as some would like. Louisiana Insurance Commissioner Tim Temple says there’s a delicate balance to be struck between insurance in the state being affordable, but not cheap.
“Cheap insurance means that company is not around when it’s time to pay claims,” Temple emphasizes. “Part of the department’s job is to make sure that the rate is correct and companies are not charging too much or too little,” he went on to note.
Temple adds that there have been fewer accidents in Louisiana over the last year, which follows a national trend, and should help to keep rates low into next year. While there are always consumers who want rock bottom prices, he warns that it’s not good business in the end.
The Insurance Commissioner points to the past when companies offered incredibly low prices for insurance and customers had to learn a hard lesson. “In the 1990’s, there was a slew of auto insurance companies and the insurance got so cheap … but, when they had claims, they weren’t there to pay,” he adds.
... but those rates can't get TOO low
... but those rates can't get TOO low
