Louisiana has the second-highest auto insurance rates in the nation, despite State Farm, Progressive and Louisiana Farm Bureau issuing rate cuts to personal drivers.
Businesses across the state, however, are still dealing with high costs, something Insurance Commissioner Jim Donelon says is not likely to change without legislation.
The unpredictable and pricey nature of insuring business vehicles in Louisiana drove Capital City Produce to enter into a group captive insurance agreement with several other businesses, says president Darin Arceneaux. The risk of insurance premium increases was too high for Capital City Produce’s fleet of 54 refrigerated trucks, he says, so the company had to leave the traditional insurance market.
Jeff Albright, CEO of the Independent Insurance Agents & Brokers of Louisiana who has lobbied for reform, says that this year could be the year tort reform passes in the Legislature because of the high number of business-friendly, conservative legislators taking office this month.