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LSU Survey: HALF Of Storm Victims Upset With Their Insurance Company

by Eric Holl, Executive Director

April 20, 2022

According to a statewide survey released yesterday by LSU’s Reilly Center, 47% of Louisianans who have filed a homeowners’, flood or rental insurance claim in the last two years are dissatisfied with how their insurance company handled their claim.

There have been 750,000 claims filed as a result of Hurricanes Laura, Delta and Ida, which means that roughly 375,000 Louisiana families are unhappy with how their insurance company handled their hurricane claim.

Why? Because insurance companies use shady delay and denial tactics to avoid paying claims, while the legislature and insurance commissioner continue to let them get away with it.

See below for a statement from Real Reform Louisiana Executive Director Eric Holl:

“When hurricane victims can’t get the money they’re owed to rebuild, our entire state suffers. We have seen population loss in Southwest Louisiana, and we will see it in Southeast Louisiana if insurance companies continue to abuse policyholders. We can fix this, by empowering policyholders with claims transparency, increasing penalties on bad actors, and enforcing criminal fraud laws on behalf of policyholders. It’s time for the legislature to pass real insurance reform to address this crisis.”

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Insurance Industry: "Credit Scores" Among Reasons for Louisiana's Rising Insurance Costs.

By Ben Riggs • 16 Feb, 2024

Insurance Industry: "Credit Scores" Among Reasons for Louisiana's Rising Insurance Costs. A new report shows that auto insurance rates are skyrocketing, rising by 26% across the U.S. On average, Louisiana drivers pay $2,909 annually, roughly 6.53% of their income for auto insurance. Wayne Watley at Watley Insurance Group lists “credit scores” among the reasons for Louisiana’s rising auto insurance costs, including poor roads and uninsured motorists. Mr. Watley goes on to say, “It’s a challenge because we’re not one of the richest states, but we have some of the highest premiums.” He is correct—and the data backs him up. Insurance companies use credit scores to determine insurance rates for policyholders. Louisiana ranks 48th in median household income and 49th in average credit score . According to a recent study , safe drivers in Louisiana with poor credit pay 111% more than safe drivers with excellent credit ($1,505 / $713). Consequently, Louisiana has the second-highest auto insurance rates in the nation, which leads to more uninsured motorists, another primary cause of higher insurance rates. The use of credit scores in rate setting also creates perverse incentive structures that make Louisiana roads less safe. In Louisiana, safe drivers with poor credit pay an average of $905 more than drivers with a DWI and excellent credit ($3,548 / $2,643). Meanwhile, traffic fatalities increased by 21% from 2019 to 2022 in Louisiana, and the fatality rate per 100 million vehicle miles traveled increased by 18%, according to KPLC . Louisiana desperately needs real insurance reforms that lower costs, protect consumers, hold insurers accountable, and make our roads safer.