Governor vetoes auto insurance premium reduction bill

The bill by State Senator Kirk Talbot of River Ridge said it would lead to a significant reduction in insurance premiums

Governor vetoes auto insurance premium reduction bill
(Source: WAFB)

BATON ROUGE, La. (WVUE) - Governor John Bel Edwards vetoed a bill that aimed to reduce auto insurance premiums in Louisiana, a state known to have one of the highest rates for car insurance in the country.

The governor’s office announced Friday the veto of that bill and seven other bills from the Spring Legislative Session.

Senate Bill 418 by State Senator Kirk Talbot, of River Ridge, was called the Omnibus Premium Reduction Act of 2020 and included several proposed actions in hopes to bring down premiums. Some of the proposals in the bill included increasing the prescriptive period, or the time a person has to file a lawsuit from one year to two years. The bill would have also lowered the threshold for a civil jury trial from $50,000 to $5,000.

The bill did not have a problem passing both chambers of the legislature. In the veto Friday evening, Governor Edwards said the bill was not a compromise on auto insurance and would not lead to a reduction in auto insurance rates in the state.

“Senate Bill 418 is neither a compromise nor is it a mandate to decrease rates,” Edwards said. “It is important to note that not a single insurance company testified in committee that Senate Bill 418 would actually reduce rates. Further, the rate reduction provision in the bill is permissive, rather than mandatory and actually allows for rate increases if the insurers are able to demonstrate one would be needed.”

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