Jim Beam column:Auto insurance is top issue

Legislators have so far filed 21 bills dealing with efforts to reduce the cost of auto insurance. Gov. Jeff Landry and Insurance Commissioner Tim Temple appear to agree on 16 of those measures, but they are definitely not on the same page.

Landry held a news conference on auto insurance reform Wednesday and Temple held one on Thursday. When asked why Temple wasn't at his conference, Landry said, "I have no idea, you'd have to ask him tomorrow."

The Center Square reported that Temple used his news conference to address what he called "incorrect" statements made by Landry a day earlier. And Temple explained why he and Landry should be on the same page.

"If we aren't on the same page about the problems, we can't begin to make real progress on the solutions," Temple said.

Auto insurance relief has been slow in coming because of the perennial legislative battles between insurance companies and trial lawyers who handle most auto accident insurance claims.

Judging from what both officials said, it appears that Temple thinks Landry is too close to trial lawyers and Landry thinks Temple is too close to insurance companies.

Landry did receive some $700,000 in campaign contributions from trial lawyers when he ran for governor in 2023. He paid them some of that back by vetoing an important rate-reducing bill legislators approved last year.

The bill that Landry vetoed would have limited those who are injured in auto accidents from collecting more money in damages than what they actually paid for in medical bills. It's called the "collateral source" rule.

Landry said he would support that rule this year but with legislation that mirrors rules in Texas. He said last year's bill didn't address the problem and took rights away from those who are legitimately injured.

"Both sides have plenty of blame to go around," Landry said. "Today, I'm not here to help any lawyers, and I'm not here to help insurance companies. I'm here to help the citizens of the state."

Those of us in the media will do our dead level best to try and help Landry keep that promise.

The governor said he would sign a bill that would make lawyers and their clients prove their injuries were the result of a car accident.

Uninsured drivers have always been a major cost factor in accidents and Landry says he's going after those uninsured motorists. He calls it a "no pay no play" measure.

Under current law, uninsured motorists can't collect on the first $15,000 in bodily injury damages. Landry wants to raise that to $100,000 in bodily injury damages.

Landry said he would back the act that bans false, misleading, or deceptive statements in advertising and prohibits soliciting clients within 30 days of a personal injury accident.

The governor also wants to prevent insurance companies from passing the cost of advertising on to consumers. There is a pending bill that would prohibit insurers from including certain advertising costs in their rate-setting methods.

The governor wants to give the insurance commissioner new authority over companies, but Temple insists he has all the power he needs.

The Advocate said freshmen Republican House members are moving forward with legislation that likely will set up a clash with trial lawyers and Landry on measures that would make it harder for people injured in car accidents to win big payouts.

One proposed bill would make it harder for judges and juries to award big medical judgments, which trial lawyers won't like.

Rep. Chance Henry, R-Crowley, was right on target when he said solving the insurance crisis is uppermost on the minds of his constituents.

"They are more prone to blame the billboards than the insurance companies. They want a solution," he said. "That's what I was sent to Baton Rouge to do." And he is co-sponsoring several of the bills favored by business interests and insurance companies.

A bill by a Republican representative from Covington would cap the damage award for pain and suffering at $5 million. You can bet your bottom dollar the trial lawyers will be fighting that one.

Let's hope the high cost of auto insurance gets the attention it deserves at the upcoming session. Those of us in the motoring public have waited long enough to get some lower premiums.

Jim Beam, the retired editor of the American Press, has covered people and politics for more than six decades. Contact him at 337-515-8871 or [email protected].

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