Louisiana drivers are finally seeing relief after years of some of the highest auto insurance premiums in the nation. More than 20 insurers have filed rate decreases in 2025, with new reductions taking effect in December.
Insurance Commissioner Tim Temple announced November 21 that the declines are a direct result of Governor Jeff Landry’s 2025 tort and insurance reform package—considered the most sweeping legal reform effort in state history.
Major Carriers Cutting Rates
Several top insurers have already secured approval for significant decreases:
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Encompass Insurance (National General program): 15% reduction for 1,516 customers, effective Dec. 8.
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Allstate Insurance: 8.1% reduction for standard policies and 6% for non-standard policies, impacting 10,333 policyholders beginning Dec. 16.
Other major carriers—including GEICO, State Farm, Progressive, Liberty Mutual, and Louisiana Farm Bureau—have filed similar decreases throughout the year.
Why This Matters for Louisiana
The 2025 reform package included 27 bills aimed at reducing excessive litigation and improving regulatory oversight. Key changes include:
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Comparative Fault Update: Plaintiffs barred from recovery if 51% or more at fault.
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“No Pay, No Play” Expansion: Uninsured drivers now face a $100,000 threshold for bodily injury and property damage before they can recover.
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Collateral Source Rule Revision: Plaintiffs may recover only actual paid medical costs—not inflated billed amounts.
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Commissioner Oversight: New authority to reject excessive rate hikes and increase transparency.
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Removal of the Housley Presumption: Requires medical evidence to link injuries directly to accidents.
State officials say these reforms target Louisiana’s historically high litigation rates—nearly triple the national average for bodily injury claims.
Looking Ahead
The rate decreases now appearing across the market indicate that the reforms are gaining traction. More carriers are expected to file downward adjustments through 2026 as Louisiana works to stabilize auto insurance costs for families and businesses across North Louisiana.