Louisiana’s New Auto Insurance Bills Spark Tensions Among Lawmakers and Lawyers

BATON ROUGE, La. — Freshman Republican House members are advancing legislation aimed at lowering Louisiana‘s high auto insurance rates, which could ignite conflict with trial lawyers and Governor Jeff Landry. The legislative session begins Monday, March 26, 2025, and legislators are keen to see tangible reforms amid public outcry over insurance costs.

Last year, Landry drew ire from newly elected lawmakers by vetoing crucial proposals designed to challenge trial attorneys. Now, in a bid to align interests, he and the freshmen House members have been engaged in negotiations to formulate a set of bills that address concerns on both sides. These discussions culminated in a meeting at the Governor’s Mansion recently.

Senate President Cameron Henry, R-Metairie, indicated that last week’s meeting with notable trial attorneys—such as Gordon McKernan of Baton Rouge and Digger Earles of Lafayette—adds layers of complexity to negotiations. “Given the uncertainty after that meeting, we know these bills need to move forward during this session,” he stated.

Legislators, including Rep. Brian Glorioso, R-Slidell, expressed caution around advancing certain bills that have historically faced opposition from both the governor’s office and trial lawyers. “We’re strategizing how to maximize our influence without jeopardizing those who are legitimately injured,” Glorioso noted. The main agenda item on the table is House Bill 34, which aims to limit large medical judgments awarded in car accident cases.

Landry did not respond to a request regarding HB 34, nor did representatives from the Louisiana Association of Justice, an organization representing the trial lawyers.

In a press conference on Wednesday, Landry unveiled his legislative priorities concerning auto insurance but positioned them as a balanced means to benefit citizens rather than favoring any specific interest group. “Too long have we seen a war between insurance companies and trial lawyers. My objective is to help the citizens of the state,” he remarked.

The proposed bills are meant to address the economic impact of escalating insurance premiums in the state while maintaining the rights of those injured. Some proposals could constrain the potential awards available to trial lawyers, while others could restrict how much insurance companies are liable for payouts.

Connie Koury, executive director of the Louisiana Association for Justice, voiced a cautious optimism regarding Landry’s initiatives, expressing hope for collaboration to bring necessary reforms without undermining citizens’ rights. Similarly, Rodney Braxton, executive director of the Insurance Council of Louisiana, mentioned that while the ideas presented are worth discussing, more significant reforms are essential to drive costs down comprehensively.

Key components of Landry’s approach include potential changes to collateral source rules affecting the recoverable amount for plaintiffs, broadly aiming to adopt similar processes as those in Texas. Landry’s support for this transformation signifies a shift away from last year’s rejection of similar measures.

“We’re striving for a fair and balanced system,” Landry added, highlighting that the pursuit of equity in medical billing and claims processing is critical for reducing consumer costs. Among other proposals is a “no pay no play” initiative to prevent uninsured drivers from collecting certain damages, emphasizing that responsible insured drivers should not bear the financial burden created by uninsured motorist claims.

Freshman legislators are also proposing the Louisiana Lawyer Advertising and Unfair Trade Practices Act, seeking to regulate misleading attorney advertising, thereby curbing unnecessary costs transferred to insurance premiums.

Despite the detailed legislative agenda, divisions remain pronounced surrounding the proposed caps on pain and suffering damages and criteria for determining fault in multi-vehicle accidents. As these discussions unfold, it will be crucial for lawmakers to strike a balance that protects both consumers and the legal community.

With public support for reform looming large, the final weeks of the Louisiana legislative session promise intense debate as lawmakers attempt to address pressing issues while navigating competing interests.