Louisiana Governor Signs Bills to Lower Insurance Rates

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An artistic representation of legislative efforts to reform insurance in Louisiana, showcasing key symbols of truth and stability.

News Summary

Governor Jeff Landry of Louisiana has enacted a series of bills aimed at reducing the state’s highest-in-the-nation auto insurance rates. The reforms include a $10,000 tax credit for fortified roofs, increased transparency in pricing, and restrictions on using credit scores for rate increases. Lauded by the governor, these changes come as part of a comprehensive legislative effort to make insurance more affordable for Louisiana residents. Despite progress, Landry emphasizes the ongoing need for accountability from insurance companies should rates remain high.

Louisiana – Governor Jeff Landry has signed a comprehensive series of bills aimed at reducing the high auto and property insurance rates that have plagued Louisiana residents. This legislative effort comes as a response to the urgent need for reform in a state that currently holds the record for the highest average auto insurance rates in the United States.

The new legislation, which includes significant reforms to the state’s civil justice system, was celebrated by Landry during a recent press conference. He expressed gratitude to the Louisiana Legislature for their support in passing these critical reforms, particularly highlighting Senate Bill 231 as a pivotal part of the legislative agenda.

Among the notable reforms introduced are a $10,000 state income tax credit for homeowners who install certified fortified roofs, measures that grant the state’s Insurance Commissioner enhanced authority to reject excessive rate increases, and a call for greater transparency in the pricing strategies of insurance companies. Landry emphasized the importance of disclosing how rates are calculated, urging an end to the proprietary nature of rate algorithms that currently shield such calculations from public scrutiny.

Governor Landry defined his approach as a balanced method aimed at regulating both the insurance companies and trial lawyers. He seeks to minimize the impact of lawyer advertising on insurance rates and curtail certain evidential presumptions in personal injury lawsuits, which he believes contribute to the escalating insurance costs.

Other reforms targeted by Landry include new distracted driving laws prohibiting cellphone use while driving, aimed at reducing the number of accidents and claims associated with such behavior. Additionally, the legislation encourages insurance companies to offer discounts for commercial trucks equipped with dashboard cameras. Another key reform is the prohibition of using a driver’s credit score as a reason for increasing insurance rates.

In light of these changes, Landry acknowledged that progress has been made but emphasized that more work is necessary to bring down insurance costs throughout Louisiana. He stated that should rates remain high after implementing these reforms, residents should hold insurance companies accountable for their practices.

As of 2025, Louisiana’s auto insurance landscape has entered a crisis mode, with the average full coverage plan costing approximately $301 per month. The minimum coverage requirements mandate specific limits for bodily injury and property damage liability, further exacerbating financial pressures on state residents.

Landry’s administration has already signed a total of 28 insurance-related bills in 2025, many of which were enacted prior to his latest public announcements. These legislative efforts represent a long-standing attempt to confront the complex issues tied to high insurance rates in Louisiana, attributed largely to its challenging legal environment. With these reforms, the governor aims to signal that Louisiana is “open for business” by aligning its policies with those of other pro-growth states.

The passage of these reform bills marks a significant step in addressing the long-standing issues of high insurance rates in Louisiana. As state lawmakers and residents await the potential impacts of these changes, there remains a collective hope that the reforms will lead to a more affordable insurance market in the near future.