An interesting article in Houma Today makes the point that one major reason automobile insurance rates are high in Louisiana are the laws restricting jury trials.

A jury trial in Louisiana must have an amount in contention above $50,000 or you cannot ask for a jury. So, the end result is that most damage suits resulting from automobile accidents end up in front of a judge since the great majority of cases are for less than $50,000. What’s the problem with a trial before a judge instead of before a jury? Well, it boils down to the fact that judges are elected and tend to side with the plaintiffs that voted for them rather than the insurance companies.

The article also notes:

“…insurance companies would rather settle, she said, than cast their lot before a judge they fear might not rule fairly, even if they believe the client is not at fault. Louisiana, insurance experts note, is one of the few states where insurance companies are sued directly rather than just the people they insure.

She cites a new report at insure.com, an insurance-industry Web site, that shows Louisiana’s average auto-insurance rates at $2,452 annually, the second highest in the nation, behind Michigan. Louisiana has held the No. 2 spot for years, checks of various industry reports show.”

UPDATE:  Louisiana has now moved up to the #1 most expensive state for automobile liability insurance coverage. Our average cost is $2,500 per year compared to around $1,500 in most states. Read more here:  http://insurancenewsnet.com/article.aspx?id=308989