Early data signaling even lower LA rates to come

Early hopeful signs concerning vehicle insurance costs for Louisianans might escalate, data from elsewhere portend.

With the end of the roadblock that was the pro-trial lawyer Democrat former Gov. John Bel Edwards upon his leaving office at the start of 2024, that year and last year the Republican legislative supermajorities and GOP Gov. Jeff Landry got busy with meaningful tort reform. Those supermajorities hardly breached the Edwards firewall protecting a legal system designed to disproportionately shovel money to trial lawyers, but Landry proved far more accommodating in ushering in agenda that has chipped away at this archaic edifice, with the assistance of Republican Insurance Secretary Tim Temple (although the two came to loggerheads sometimes with Temple wanting to push the pace faster than did Landry).

Given a fair amount of lifting over the past couple of years in the books, 2026 will look to be much quieter for insurance changes as a period of digestion seems in order. Yet already it appears fruits of this labor are accruing to consumers. Amid a half-dozen announced insurer average rate reductions since the start of 2025, pushing down the overall statewide average personal vehicle rate a calculated three percent, more dramatic changes could enjoy a pause, as results from similar legislation enacted in Florida show.

The Sunshine State once had as bad of an anti-consumer tilt as did Louisiana but a couple of years before Louisiana began its first tepid, then accelerating reform efforts, it began implementing legal changes that Louisiana has in many ways emulated. Thus, these have begun to pay off earlier in Florida, with that state recently announcing a series of large insurer rate cuts overall around double digits over last year’s.

Like Louisiana, Florida once had very disproportionate amounts of damages being litigated (in fact, just a few years ago three-quarters of all dollars sued for nationally hit Florida courts). With a legal framework more closely aligned with Florida’s now, Louisiana should start to see a similar result soon which is what translates into lower rates.

That will be delayed, in part because Louisiana didn’t move as early or as quickly. For example, in 2024 Landry vetoed a bill that would have modeled more closely Florida’s law regarding valuation of medical damages which has contributed to the lower rates. However, last year he assented to a bill largely the same. Also, some of the other legislation enacted last year didn’t come into effect until the start of this year.

Still, with a tort environment now not far off that of Florida’s going forward, consumers can be optimistic (although trial lawyers’ pocketbooks will be lighter) that further and accelerating rate reduction looks likely. As has happened frequently in the first two years of the Landry administration and this Legislature, in contrast with the previous two terms of Edwards, from lower taxes to stabilized spending to increased economic development another victory for the state’s people seems in the offing.