House OKs auto liability insurance increase
Created: May 20, 2008 09:48 AM    
Modified: May 20, 2008 07:14 PM


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The Louisiana House of Representatives has decided that Louisiana should raise the minimum level of required automobile liability insurance, an increase that would mean higher insurance costs for over 1 million motorists.

Supporters say the state's current minimum liability levels -- $10,000 coverage for damage of other people's property, $20,000 coverage for injury or death to more than one person in an accident and $10,000 coverage for injury or death to one person -- were set in the early 1980s, when health insurance and automobile costs were far lower.

The bill would raise that to $25,000, $50,000 and $25,000 respectively.

The bill's sponsor, Rep. Erich Ponti of Baton Rouge, said Louisiana has the lowest minimums in the nation.

Opponents say one million residents should not face higher insurance costs at a time of rising food and fuel prices.

Rep. Mert Smiley of Port Vincent said the move could be the "straw that broke the camel's back."

The House on Monday approved the bill by a vote of 57-33, sending it to the Senate. The Legislature passed the same changes last year but
that bill was vetoed by then-Gov. Kathleen Blanco.

Gov. Bobby Jindal has not taken a public position on the bill.

The Associated Press contributed to this report

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