Louisiana lawmakers push for reform amid auto insurance crisis

BATON ROUGE, La. (Louisiana First) — Louisiana is the most unaffordable state in the nation for auto insurance, according to state lawmakers, prompting a slate of reform bills aimed at lowering costs.

“You can drive to Texas, Mississippi, or Arkansas, and sometimes cut your rates in half, and that’s unacceptable,” said Rep. Gabe Firment, who described the state’s auto insurance situation as a “crisis.”

Rep. Firmet said House Speaker Phillip DeVillier echoed the urgency.

“We’re coming out of regular session. He recognized the urgency to do something about the automobile insurance crisis,” said Firmet.

In response, a coalition of lawmakers has introduced insurance and legal reform legislation targeting what they said are the root causes of high premiums — excessive litigation, frequent bodily injury claims, and large jury verdicts that have driven insurers out of the market.

“To put it in perspective: In 2021, in Louisiana, with a population of about 4.5 million, there were 66,000 bodily injury claims related to auto accidents,” said Firment.

That same year, New York, with a population of 20 million, had just 60,000 such claims.

The reform package includes proposals to cap certain damages, restrict payouts to claimants mostly at fault, repeal pro-plaintiff legal presumptions, and increase transparency in trials and billing. Other measures would limit attorney fees, reduce venue shopping, and address deceptive legal advertising and third-party litigation funding.

One such bill, House Bill 657 by Rep. Michael Carver, targets misleading legal ads. It is expected to reach the House floor this week.

Firment said that all bills — except those addressing unethical advertising and distracted driving — have already passed to the Senate. Lawmakers say they will continue pushing for reform as the bills move forward.

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