The Louisiana House of Representatives Committee on Civil Law and Procedure has approved a set of automobile insurance-related bills, advancing a reform initiative that has been under discussion for an extended period, according to BestWire.
Before the legislative session began, Governor Jeff Landry and Insurance Commissioner Tim Temple held separate press conferences to outline their reform positions.
While they agreed on issues such as legal abuse and distracted driving, their differing views became clear when Landry expressed support for limiting the use of credit scores in underwriting (see how Rising Auto Insurance Costs in 2025).
The insurance industry opposes this, arguing that credit scores are essential for aligning risk with pricing.
Caitlin Murray, regional vice president for the Southeast at the National Association of Mutual Insurance Companies, noted that the industry across Southeast states generally supports legislation addressing litigation and legal abuse (see Personal Auto Insurance Rates Overview).
She emphasized that tort issues remain a key factor in driving insurance costs. Murray also urged lawmakers to consider measures that would attract additional insurance capital to Louisiana.
Lawmakers should also focus on ways to attract more insurance capital into the state
Caitlin Murray, regional vice president for the Southeast at the National Association of Mutual Insurance
Among the six bills that passed the committee, two focus specifically on tort reform, according to Mark Friedlander, senior director of media relations at the Insurance Information Institute.
House Bill 34 targets inflated awards in personal injury lawsuits
The bill would permit both sides in a lawsuit to present evidence of the original amounts billed for medical care, the amounts actually paid, or both.
This would give juries a comprehensive view of the medical costs, allowing them to base awards on accurate figures. Under current law, juries can only see the billed amounts and are not informed of payments made or agreements reached regarding those expenses.
The second major bill, House Bill 431, proposes significant changes to the state’s legal standard for fault.
Presently, if a person injured in an accident shares responsibility, any award is reduced proportionally to their level of fault. If HB 431 passes, no award would be granted if the injured party is found to be 51% or more at fault for their damages.
Friedlander stated that both measures aim to reduce the influence of legal system abuse driven by aggressive advertising from personal injury attorneys, which has contributed to a high volume of frivolous lawsuits in the state, according to US Auto Insurance Rates by States.
We believe both measures will help curb the impacts of legal system abuse being driven by billboard attorneys that has led to an excessive level of frivolous lawsuits being filed in the state
Mark Friedlander, senior director of media relations at the Insurance Information Institute
These legislative efforts occur as Louisiana faces some of the highest auto insurance premiums in the country. The Insurance Research Council reported that in 2022, the state’s average annual premium per vehicle was $1,588—approximately 40% above the national average.
