What Louisiana’s New Insurance Laws Mean for Drivers and Policyholders

By: Dee Dee Reese July 17, 2025

Sheveport, LA – Louisiana has long had the highest insurance rates in the United States. In 2023, property and casualty insurance companies reported $8.84 billion in losses. With $12.74 billion in (Property and Casualty) premiums written each year, the state’s insurance market has become unstable and expensive for drivers.

In response, Governor Jeff Landry recently signed a series of new laws meant to reduce costs and reform the insurance system. These changes, which take effect in the 2025–2026 fiscal year, aim to discourage fraudulent claims, reduce lawsuits, and improve safety on the roads.

Key Changes in the New Insurance Laws:

HB 434 – “No Pay, No Play”
Uninsured drivers will now be blocked from claiming the first $100,000 in damages after an accident. The previous limit was $15,000 for property damage and $25,000 for injuries.

HB 450 – Injury Claim Evidence
The Housley presumption, which assumed an injury happened during an accident, has been removed. Now, drivers must prove their injury is directly linked to the crash with medical records.

SB 231 – Medical Cost Reform
Insurance payouts for medical claims will now be based on the actual amount paid, not the higher billed amount. This change is similar to existing law in Texas.

HB 436 – Restrictions on Undocumented Immigrants
Undocumented individuals involved in car accidents will no longer be able to collect general damages, including for pain and suffering.

HB 431 – Fault Rule Change
If a driver is found 51% or more at fault in a crash, they cannot collect any damages. This replaces the previous system where partial compensation was still allowed.

HB 549 – Dash Cam Discounts
Commercial truck drivers who install and use dash cams or telematics devices will be eligible for insurance discounts, such as 5% off their premiums.

HB 519 – Distracted Driving Ban
A new law bans texting and using social media while driving to help reduce accidents caused by distractions. State officials believe the new laws will lead to lower insurance premiums over time. They argue that reducing fraud and limiting high-cost claims will help stabilize the market.

However, insurance experts say it may take time to see real savings. “These laws are a major shift,” said Sandra Lee, an insurance analyst in Baton Rouge. “But we won’t know the true effects until they are tested in court.”

As these changes take hold, drivers, insurers, and attorneys across Louisiana are adjusting to a new system. While the reforms aim to reduce costs and improve accountability, their full impact remains uncertain.