Gov. Blanco Crashes Auto Insurance Increases

By Anonymous

Gov. Kathleen Babineaux Blanco today rejected a bill increasing the minimum liability coverage for Louisiana motorists.

Sen. Bill 223 by state Sen. Mike Michot, R-Lafayette, passed during the past session of the Legislature, called for raising the minimum liability auto insurance policy from 10-20-10 - $10,000 for bodily injury for one person, $20,000 for all injuries and $10,000 for property damage - to 25-50-25.

For weeks, it was unknown whether Blanco would approve or reject the bill.

In a letter today to Glenn Koepp, secretary of the Senate, Blanco said the bill would raise the cost of auto insurance and result in higher numbers of uninsured drivers.

Blanco also rejected the increases on the basis they would not be phased in and, therefore, drivers would not have enough time to adjust to them.

Credit: CityBusiness Staff Report

(Copyright 2007 Dolan Media Newswires)

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