For the second consecutive year, car insurance became a major political issue in Louisiana’s legislative session. Just like last year’s property insurance debate, the only thing both sides agreed on was that insurance premiums are too high for consumers.
This year, we were encouraged to see the Legislature take meaningful steps toward reducing the state’s exceptionally high insurance rates. The new laws are focused on tackling the root causes of high premiums.
One key approach involves reducing the costs associated with lawsuits. Lawmakers argue that high litigation costs, particularly large awards to accident victims, are a significant driver of expensive insurance. Some of the new bills aim to address these issues by requiring plaintiffs to prove their injuries occurred in the accident, preventing drivers who are mostly at fault from collecting damages, and limiting payouts to uninsured motorists involved in accidents.
Supporters believe these changes will reduce costs for insurance companies, which should eventually lower rates for consumers. The goal is also to make Louisiana more appealing to insurers and encourage a more competitive market.
The most debated bill, however, wasn’t related to lawsuits. House Bill 148, championed by Governor Jeff Landry, grants the state’s insurance commissioner more authority to reject proposed insurance rate hikes. While the bill passed, Insurance Commissioner Tim Temple opposed it, warning that giving one elected official that much power could destabilize the market and drive some insurers out of the state. Temple argued that this could lead to even higher rates.
With the legislative session now over, it’s crucial to focus on implementing these new laws effectively. The Department of Insurance has been granted additional authority, but how they choose to use it will determine whether these reforms are successful.
Lawmakers must also continue to listen to the people of Louisiana. They should stay open-minded about whether these changes actually lead to lower rates. After all, high insurance costs—both property and auto—are a major obstacle to the state’s growth compared to other Southern states.
Many Louisiana residents are tired of the political battles and just want lower rates. Like everyone else, we are counting on our leaders to ensure that these changes make a real difference.
