As car insurance rates rise across the U.S., many drivers feel the increased financial weight. In states like Louisiana, the spike in premiums has already hit a crisis point. Louisiana now holds the crown for the highest full-coverage insurance rates in the country. In near-desperate response, lawmakers search for remedies in their control.

Some Louisiana lawmakers believe that attorney advertising is making the problem worse. We’ve all seen the billboards and TV ads urging folks to sue after a car accident. Some think this “culture of litigation” drives up the number of claims. 

When courts force insurance companies to pay more in settlements, they raise premiums for everyone. Yes, even for drivers who don’t file claims. Fox 8 in New Orleans shared recent committee footage of Rep. Michael Johnson, a Louisiana state representative. He proposed that the rise in lawsuits – specifically those marketed by attorney billboards – might be a notable factor in rapidly rising premiums.

But not everyone agrees with Johnson. While he and others want to crack down on exaggerated attorney ads, there’s a big hurdle: the First Amendment.

Rep. Kyle Green pointed out that restricting these ads would be unconstitutional and violate free speech. Other lawmakers, like Rep. Mandie Landry, wonder why attorney ads are being singled out when other controversial billboards stay up without question.

Outside Louisiana, drivers across the country also face rising rates. Insurance companies pass higher costs on to their customers for several reasons. First, inflation drives up the cost of repairing cars, and supply chain issues make parts more expensive or even harder to find. 

In addition, modern cars boast more advanced technology that translates to higher repair estimates. Unpredictable yet regular severe weather events also damage cars, forcing insurance providers to pay out more. As such, executives must answer to at-risk profit margins. So, insurance companies pass the above expenses along to drivers through higher premiums.

As insurance rates continue to climb, drivers should keep an eye on their policies. While Louisiana may be facing the worst of it, many other states are seeing the same issues driving up their costs. Shopping around for the best rates and staying informed about car insurance aspects in your control can help keep your premiums as low as possible.