Louisiana minimum auto insurance bill stalls

Ricky John Bergeron
June 2, 2008
June movie releases
June 4, 2008
Ricky John Bergeron
June 2, 2008
June movie releases
June 4, 2008

(AP) – A bill that would raise mandatory minimum auto insurance levels stalled in a Senate committee when its chairman declined to break a tie vote.


Louisiana law now requires car and truck owners to have “10-20-10” minimum motor vehicle liability coverage: $10,000 coverage for damage of other people’s property, $20,000 coverage for injury or death to more than one person in an accident and $10,000 coverage for injury or death to one person.


The bill by Rep. Erich Ponti, R-Baton Rouge, would raise that minimum requirement to “25-50-25” and bring the state in line with 33 others, including Texas, Arkansas and Mississippi. Ponti has acknowledged the change would lead to a rate increase for about 1 million motorists, but said it could lower rates for those who carry more than the minimum insurance.

The measure hit a wall in the Senate Insurance Committee when Sen. Don Cravins, the chairman, declined to break a 2-2 vote on Wednesday.

“It’s very difficult right now for me to vote for something that will raise people’s rates,” said Cravins, D-Opelousas.

Ponti has said Louisiana’s mandatory minimums are unnaturally low. The rates have been unchanged since the early 1980s, he said.