Louisiana’s Legal Reforms: A Step Toward Fairer Courts and Lower Auto Insurance Rates

As 2026 gets underway, Louisiana residents finally have reason to celebrate real progress in our long fight against skyrocketing auto insurance rates. Governor Jeff Landry, Insurance Commissioner Tim Temple, and state lawmakers deserve credit for pushing through a series of reforms in 2025 that are now reshaping our legal system and helping to bring down costs that have burdened families and businesses for far too long.

The Big Change: A Fairer Fault System

One of the most significant reforms is HB 431 (Act 15), sponsored by Rep. Emily Chenevert (R-Baton Rouge) and signed into law by Gov. Landry. This legislation shifts Louisiana from a pure comparative fault system to a modified comparative fault standard in personal injury cases—aligning us with the majority of states nationwide.

Under the old “pure” system, a plaintiff could recover damages even if they were 90% at fault, receiving, for example, 10% of the award. That outlier approach fueled inflated lawsuits and drove up insurance premiums for everyone.

Now, effective January 1, plaintiffs found 51% or more at fault in causing their own damages are barred from recovering any award. If fault is 50% or less, damages are reduced proportionally—for instance, a 30% at-fault plaintiff can recover 70% of the total. This change restores balance and accountability to our courts, discourages frivolous claims, and should help ease pressure on auto insurance rates over time. With 34 other states using a similar modified system, Louisiana is no longer the odd one out—our legal environment is now more predictable and fair for all.

Better Transparency on Medical Bills

Another important step is SB 231 (Act 466), sponsored by Sen. Mike Reese. This law allows juries in personal injury cases to consider the actual amount paid to medical providers—often far less than the billed amount—rather than just the inflated sticker price. When health insurance is involved, recovery is limited to what the insurer actually paid.

This reform helps align damage awards more closely with real economic loss and serves as a meaningful check on abusive billing practices. Still, more work remains to address inflated medical charges in cases where patients lack insurance coverage.

The Market Is Already Responding

The positive effects of these reforms are not hypothetical—they’re showing up in people’s wallets. Earlier this month, Commissioner Temple announced rate decreases from Progressive that will benefit nearly 470,000 Louisiana drivers:

• Progressive Security Insurance Company: an average 6.6% decrease for more than 270,000 private passenger auto policyholders.
• Progressive Paloverde Insurance Company: an average 4% decrease for nearly 200,000 additional policyholders.

These reductions take effect January 16 for new policies and February 13 for renewals. Progressive attributes the cuts primarily to a decrease in claim frequency, following similar rate filings from major insurers like State Farm, Geico, and Allstate—all of whom sought decreases in 2025 after seeing reduced losses in 2024.

Of course, these are statewide averages. Your actual rate will depend on where you live, your driving record, and other personal risk factors—New Orleans drivers, for example, typically pay more than those in Shreveport or Alexandria. But the trend is unmistakable: fewer claims and fairer laws are finally easing the pressure on premiums. That’s good news for Louisiana families.

Room for More Progress

Despite these successes, unfinished business remains. We were disappointed by Gov. Landry’s veto of Senate Bill 111 and the Senate’s rejection of more than a dozen other meaningful reform bills. Those measures could have introduced greater transparency and fairness, including caps on general damages and limits on attorney contingency fees.

We also remain concerned about HB 148 (Act 11), which gives the insurance commissioner broad unilateral authority to reject rate requests and disclose proprietary or confidential information for subjective reasons. This risks injecting politics into what should remain a market-driven process and could discourage insurers from competing in Louisiana.

Looking Ahead

Louisiana has taken meaningful steps toward a fairer legal system and more affordable auto insurance, but the work is far from done. We urge Gov. Landry, Commissioner Temple, and the Legislature to build on this momentum in the coming session. These early wins demonstrate what’s possible when we prioritize transparency, fairness, and common-sense reform.