Why Does Louisiana Have the Second-Most Expensive Car Insurance Rates? Part 2

You should continuously look at other insurance policies in an effort to save money. 

Louisiana roads are also not in a very good state of repair, raising the risks of accidents. Michigan, the state with the highest insurance rates, is known for the terrible shape of its roads. Urban highways and roads in the New Orleans area are poorly designed and engineered, and many have fallen into a state of disrepair. The state’s gasoline tax is supposed to fund road repairs, but the state consistently falls short in the collections arena. 

Louisiana Roads Make Driving More Difficult

In addition, because the state has lower income levels and very powerful oil companies doing business here, Louisiana does not charge a very high gasoline tax. The .20 cents per gallon tax is one of the lowest in the United States. The lower collections mean that Louisiana does not have much money to spend on highway projects, and the roads get progressively more dangerous each year. Potholes and poor pavement conditions can cause drivers to lose control of their cars or steer suddenly to evade a road defect. 

Distracted Driving Jacks Up Insurance Rates

Louisiana is also known as a state with a particularly bad distracted driving problem. In 2020, there were over 23,000 people injured in the state because of distracted driving crashes. The state has the fifth-highest fatality rate for distracted driving crashes per billion miles traveled, meaning there are more crashes, and they are more severe. 

The state has tough laws for distracted driving and regularly runs awareness campaigns to rein in the illegal behavior, but neither seems to be working. In fact, the problem seems to be getting worse. When a driver looks down to send a text, they can travel the entire length of a football field before they return their eyes to the road. Distracted driving crashes happen at hour speeds, and they are more dangerous because the driver cannot take evasive actions. A prevalence of distracted driving crashes means that insurance companies pay out more in claims and have to charge higher prices on their policies.

Minimum Coverage Makes Your Claim More Complex

Because insurance is so expensive and many drivers have minimum coverage, your auto insurance claim may be more complex. You may need to file a claim against your own policy under your underinsured motorist coverage. When you have to deal with two insurance companies, you will have to negotiate even more intensively to get enough money to pay for your damages. Then, you may also need to turn to the courts to get sufficient compensation for your injuries.

Call a New Orleans Auto Accident Attorney

If you or a loved one have been injured in a car accident, you need an attorney. Egenberg Trial Lawyers works for Louisiana residents who have been hurt by someone else’s carelessness or recklessness behind the wheel. You can send us a message online or call us at (504) 229-5700 to schedule your free initial consultation. You owe us nothing unless we are able to help you win your case.