Governor signs package of bills designed to lower auto premiums

BATON ROUGE–Gov. Jeff Landry signed a sweeping package of auto insurance reform bills Wednesday, promising to lower the cost of coverage in Louisiana by cracking down on what he calls “frivolous lawsuits” and strengthening oversight of the insurance industry.
Landry called the new auto insurance laws “the largest tort reform package, and effort made in the history of the state.” He said the goal was to take a measured approach by holding both insurers and litigants accountable for rising costs.
The signing came a week after Landry flexed his political muscle and forced one of the key bills through the Senate in a late-night vote.
The bill, House Bill 148, gives Insurance Commissioner Tim Temple more authority to reject “excessive” rate increases—power that Temple says he does not need.
Temple has downplayed the idea that Louisiana’s high premiums stem from weak regulatory power, instead pointing to legal abuse and a high number of minor injury claims.
“It’s a false claim that rates are high because the commissioner doesn’t have some magical power,” Temple said. “The problem in Louisiana is bodily injury claims and the legal system that encourages them.”
An amendment added by the governor’s supporters also requires insurance companies to make their rate filings public, a move some in the industry say could expose trade secrets.
Landry defended the change by pointing out that insurance commissioners in other Southern states, including Texas, Mississippi, Alabama, South Carolina, Florida and others, have the power to reject excessive rate hikes.
He said HB148 brings Louisiana in line with our neighboring states and gives the Insurance Department more tools to protect consumers.
Auto insurance has been one of the most important—and contentious--issues in this spring’s legislative session. Political analysts say rising car insurance rates could pose a problem for Landry in a re-election campaign.
Landry has repeatedly said he plans to hold Temple accountable if rates do not drop under the new law.
While Temple expressed skepticism about the need for HB148, he has supported the rest of the package, saying the legal reforms are necessary to stabilize the insurance market and bring rates down.
Other bills in the package that the governor signed target who can file lawsuits, how much they can recover and what jurors can consider in injury cases:
House Bill 434 raises the minimum threshold of medical costs that uninsured drivers must meet to claim medical expenses in court, from $15,000 to $100,000.
House Bill 450 requires plaintiffs to prove their injuries were directly caused by the crash in question.
House Bill 431 bars drivers found at least 51% responsible for a crash from collecting any damages. Currently, they can recover damages for the remaining 49%. Landry said business groups have long supported this change.
House Bill 436, a controversial measure, prohibits undocumented immigrants injured in car accidents from collecting compensation for general damages.
Senate Bill 231 allows jurors to consider the actual amounts paid for medical care, rather than the often-inflated billed amounts, in personal injury cases.
House Bill 549 mandates a 5% insurance premium discount for commercial vehicles with dashboard cameras. “Having undisputed video evidence will reduce litigation, improve truck driver safety, and lower costs for everyone,” Landry said.
With bipartisan backing on several of the bills, Landry said the changes mark a major step toward improving Louisiana’s insurance climate and restoring fairness in the system.
“Over the last 50 days, the only side I and the legislators who supported this package of bills have been on is the people,” Landry said. “Our people are too good to be taken advantage of again and again.”