[StBernard] Governor Blanco releases veto message for SB 223

[Westley Annis]

The Honorable Glenn Koepp
Secretary of the Senate
State Capitol
Baton Rouge, LA 70804
Re: Senate Bill No. 223 by Senator Michot

AUTOMOBILE INSURANCE: Increases minimum motor vehicle liability insurance limits.

Dear Mr. Koepp:

I understand that of the nearly four million registered vehicles in Louisiana, more than one and one-half million of the owners carry the minimum liability coverage currently required by law. Without any phase-in to allow more appropriate time for owners to adjust, all of these owners would be expected to experience a dramatic increase in their premiums -some suggest it would be greater than 20% on the average and much higher for many.

Additionally, Senate Bill No. 223 does nothing positive to address the chronic problem of the very large number of owners who do not consistently carry even the minimum liability coverage already required by law. On the contrary, the effect of Senate Bill No. 223 would be to raise the cost of insurance and thus it is more likely to make this problem even worse.

Clearly the goal of this legislation is important and desirable for the improvement of our citizens. However, in light of the devastating storms of2005 and the difficult on-going economic effects on many of our residents, this is not the time to increase the required liability coverage.

For these reasons, I have vetoed Senate Bill No. 223 and am returning it to the Senate.
Sincerely,

Kathleen Blanco
Governor
JW