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SB 11 Reported Favorably; Bans Gender Discrimination in Auto Insurance Premiums.

SB 11 by Senator Jay Luneau was reported favorably by the Senate Committee on Insurance on Wednesday, April 26th. It now heads to the Senate floor for a vote of the full body.

SB 11 prohibits auto insurance companies from discriminating against women when setting premiums. It is a pro-consumer bill that Real Reform Louisiana included in our legislative agenda.

Real Reform Louisiana would like to thank Senator Jay Luneau for authoring SB 11 and Senators Louie Bernard, Royce Duplessis, Katrina Jackson, Barrow Peacock, and Gary Smith for voting in favor of the bill in committee.

Many insurance companies charge women higher premiums than men, despite women being statistically better drivers. According to studies, women get fewer speeding tickets, receive fewer DWIs, and have fewer fatal accidents.

Auto insurance is state mandated for all drivers and rates should be set based on driving-related factors, not immutable characteristics like gender.

The Consumer Federation of America analyzed auto insurance premium data acquired from Quadrant Information Services for ten insurance companies writing policies in Louisiana. The premiums are calculated based on a base profile for a 35-year-old male or female driver who has a perfect driving record, drives a 2011 Honda Civic LX, and purchases the minimum required auto insurance coverage. Five of ten companies charge women more than men, with two insurance companies charging female drivers over $150 more than their male counterparts.

SB 11 would protect women from this unfair and discriminatory practice, ensuring that women are not unfairly penalized for their gender when it comes to auto insurance premiums by requiring insurance companies to set rates based on driving-related factors.

“SB 11 was reported favorably by Senate Insurance, which is a step in the right direction,” said Ben Riggs, executive director of Real Reform Louisiana. “No one should be penalized for their gender. Statistically, women are better drivers than men. The Louisiana Senate now has the opportunity to end the discriminatory practice of charging women higher auto insurance premiums than men and put more money in the pockets of Louisiana families.”

Click here to read the fact sheet from the Consumer Federation of America.

Click Here to Contact Your Legislator

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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.