Not Consumer Friendly Tort Reform

As we approach a new legislative session in Baton Rouge our Republican legislators have made it very clear that one of their  major agenda items will be tort reform in our state.  Particularly as it relates to automobile accidents.  They want to limit one’s ability to sue insurance companies, and claim that such measures will lead to lower auto insurance premiums.

However, what all supporters of tort reform intentionally failed to address is there is NO guarantee that such reform will lower auto insurance rates.  Supporters outside the insurance industry just assume that the big state auto insurers will out of the kindness of their hearts lower their rates as a reward for hindering one’s ability to bring a legal suit against them.

Despite what these companies would want you to believe, one of their biggest money makers is auto insurance.   Why would anyone be so naïve to assume that any change, that would allow them to make even more profit by limiting law suits, would be offset by them lowering their insurance  premiums?

Let’s see how supportive the auto insurance companies and the Louisiana Association of  Business and Industry, which is also pushing for change, would be of auto insurance tort reform if it was tied to a  mandated across the board 25% decrease in premiums charged.

This is the only type of tort reform that would actually benefit the consumer.  As tort reforms are now proposed, only the insurance companies benefit, and that’s just the way they want it.