Insurance Commissioner: Why Auto Rates are So High [VIDEO]
Louisiana Insurance Commissioner Jim Donelon talks with 101.7 / 710 KEEL's Robert J Wright and Erin McCarty about the importance of flood insurance, how increased competition among companies will lower rates and the biggest reasons that auto insurance rates are so high.
Donelon impresses on KEEL listeners, as he has repeatedly done, the importance of federally underwritten flood insurance. The commissioner reiterates that in a state like Louisiana, prone to hurricanes, major storms and flooding, this FEMA program, only mandatory in some areas, is a must.
Donelon also talks about the recent rate reductions by a number of carriers, including State Farm, Louisiana's number one insurer. As a result, he says, other companies, wanting to maintain their customer base, are lowering rates also.
Donelon, who will be running for reelection this fall, also addresses the state's high auto insurance rates, ranked second nationally in cost. He punctures the widely held myth that the cost remains high because of uninsured motorists, putting accident litigation as the number one reason for the sky high cost.
More From News Talk 96.5 KPEL
![There Are 4 Big Reasons Why Louisiana’s Auto Insurance Rates Are So High](http://townsquare.media/site/182/files/2022/04/attachment-RS47246_GettyImages-480652712-scr1.jpg?w=980&q=75)
![Forecasters Watching Tropical Disturbance Headed for Gulf of Mexico – Should Louisiana and Texas Be Worried?](http://townsquare.media/site/36/files/2023/09/attachment-Hurricane-Nigel.jpg?w=980&q=75)
![Louisiana Ranked in Most Dangerous Roads for Drivers List](http://townsquare.media/site/36/files/2024/07/attachment-louisiana-dangerous-roads.jpg?w=980&q=75)
![UPDATE: Sandbags Available Ahead of Potential Flood Event](http://townsquare.media/site/34/files/2019/07/GettyImages-1022155484-1.jpg?w=980&q=75)
![Do You Remember These 7 Famous People Who Tragically Died in Louisiana?](http://townsquare.media/site/35/files/2022/05/attachment-GettyImages-526757849.jpg?w=980&q=75)
![This Steakhouse in Louisiana Was Named the Best in the State](http://townsquare.media/site/182/files/2020/04/RS4114_163736391.jpg?w=980&q=75)
![RECALL ALERT: Thousands of Louisiana Vehicles Could Be Impacted By Faulty Fuel Pump](http://townsquare.media/site/29/files/2012/06/106958589.jpg?w=980&q=75)
![The High Cost of School Supplies for Louisiana School Kids](http://townsquare.media/site/36/files/2024/07/attachment-School-Supplies-Photo-courtesyt-of-Laura-Rivera-ArH3dtoDQc0-via-Unsplash.jpg?w=980&q=75)
![Sandbags Available Due to Potential for Flooding Next Few Days](http://townsquare.media/site/36/files/2012/08/Sandbags.jpg?w=980&q=75)