Jim Beam column:Is cheaper insurance lost cause?

Louisiana Gov. Jeff Landry signed legislation last year that was favorable for property insurance companies, so I was a little upset when I got my annual home insurance premium statement. It was $3,097, which is $287 higher than last year's premium.

I shouldn't have been surprised since most of the insurance bills I have received during my adult life have always been higher each year. I purchased a long-term care insurance policy in 1998 and the first year's annual premium was $694. It was $2,536 this past February.

The Louisiana Illuminator reported last year that the bills Landry signed will benefit the insurance industry with new freedom to raise rates on customers, cancel policies and walk away with lighter legal penalties when they refuse to pay claims.

The Illuminator said the bills were part of state Insurance Commissioner Tim Temple's agenda to create what he called a "free market" for insurance companies in the state. Less regulation would bring in more companies, he said, and that should lead to lower rates.

Two bills this year that might have given homeowners some relief didn't do it. One was defeated and the other one was watered down to do almost nothing.

Since the 2024 laws didn't lead to lower rates for me, I decided to lodge a protest with my insurance agent. As it turns out, the woman I spoke with said the increase was an inflation factor that increased my home's replacement coverage.

I have been dealing with that problem every year with my long-term care company. It said I could lower the premium each year if I lowered the amount the insurance would pay each day for nursing home care. It only pays $83 a day, so why would I lower something that is already too low.

Yes, and that is exactly what happened at my insurance agent's office. I could lower my home replacement coverage to get a lower premium, but that isn't a wise choice. So I went online when I got home and paid the $3,097 premium.

The average annual premium for a $300,000 home in Louisiana, probably twice the value of my home, is $6,184, which is No. 2 in the nation, according to bankrate.com. Nebraska is No. 1 at $6,366. Florida is No. 3 at $5,728. It's $3,103 in Arkansas, $3,468 in Mississippi and $4,085 in Texas.

Some of the pro-insurance company bills passed in 2024 may eventually reduce home insurance costs, but home and business owners are tired of waiting.

Meanwhile, some companies have already started canceling or not renewing up to 5% of their policies each year allowed under a new law. A disabled citizen told me at exercise recently that she and others who live in a mobile home park have had their homeowner policies canceled. She appealed for some help.

When new home insurance laws were passed in 2020, promises were made when Jim Donelon was insurance commissioner that rates would be lowered. However, the Illuminator said after four years, rates only increased.

My Medicare premium has continued to increase over the years, along with my secondary healthcare insurance, and my prescription drug coverage. Almost any bill I get these days for anything is always higher.

I am a living example of the high cost of auto insurance in Louisiana. You've seen what my home insurance costs, and my auto insurance is even higher.

Because of two minor wrecks I had over a three-year period, the annual premium was over $4,536. One of those wrecks was wiped off the record and next year's premium will be $3,868, still much too high.

The average annual car insurance rate in Louisiana is $2,734, third highest in the nation, according to usnews.com. Florida is the highest at $3,289. New Jersey is No. 2 at $2,768. It's $2,346 in Texas, $1,505 in Mississippi and $1,814 in Arkansas

Real Reform Louisiana in a recent news release said Louisianans pay among the highest auto and homeowners insurance premiums in the country. It said the state's auto insurers have the third highest profit margins and some of the best loss ratios in the country.

Isn't it amazing how long Louisianans have been waiting for lower home and auto insurance costs? Doesn't seem fair, does it?

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