LA INSURANCE AD COSTS - Louisiana State lawmakers considered a proposal this week that would’ve stopped insurance companies from passing on the cost of their advertising campaigns to their customers. As is allowed by state law insurance companies can factor in their advertising expenses when calculating premiums billed to Louisiana policyholders. According to a report in Insurance Business Magazine the country’s top four insurance companies — Progressive, Geico, State Farm and Allstate — spent nearly $5 billion on advertising last year nationally,. When presenting his bill to the chamber, Rep. Robby Carter, D-Amite, estimated Louisiana residents are subsidizing at least $100 million of ad expenses for the “big four.”
“Louisiana consumers are often paying higher premiums not because of their driving records or their risk, but because insurers are using massive ad buys to compete for a small set of preferred customers,” Carter explained. “As a result rates are further separated from risks, that’s not what insurance is supposed to do.”
But House Bill 252, failed on the House floor in a 27-68 vote. Party line defections included four Republicans who voted in favor of the proposal and seven Democrats who sided with the chamber’s GOP majority to kill the measure. Louisiana. When it comes to automobile insurance, Louisiana ranks among the top 5 states with higher insurance premiums and has more bodily injury claims than many states.