Governor Landry backs bill to crack down on insurance rates

NEW ORLEANS (WGNO) — Governor Jeff Landry testified in support of House Bill 576 this morning, calling for major changes to how insurance companies do business in Louisiana.

The bill would give the state more control over what insurance companies can charge, specifically granting the insurance commissioner greater authority to reject auto insurance rate hikes that are deemed excessive, unfair or discriminatory.

Landry said the legislation is meant to remove roadblocks that have prevented meaningful rate regulation in the past—including lengthy hearings, unclear burdens of proof and automatic rollbacks of competitive market designations.

”I want our insurance commissioner to be successful,” Landry said. ”I really believe that there’s not one person in this room, or in this state, that doesn’t want him and that department to be successful. However, we are consistently top three in the nation in the highest auto insurance rates in the country.”

Supporters say it’s about holding insurance companies accountable and protecting consumers, however, critics, including Insurance Commissioner Tim Temple, warn the bill could actually backfire, pushing insurers out of the state, shrinking competition, and driving prices even higher.

Right now, the average cost of car insurance in Louisiana is nearly $4,000 a year—more than double the national average. Homeowners are feeling it even more, with premiums nearing $14,000 annually.

The bill comes in response to a shrinking insurance market, a problem made worse by years of devastating hurricanes that forced many insurers to leave the state. That’s left Louisiana residents with fewer options and skyrocketing premiums.

“Insurance companies continue to report record profits. I am going to beg y’all to stop the circus,” Landry said.

The 2025 Regular Legislative Session must adjourn by Thursday, June 12.

Latest Posts