Understanding Louisiana’s New Insurance Bills: What They Mean for You

May 02, 2025

By The Bayou Insider Staff

In a state where auto insurance rates rival monthly mortgages, Louisiana lawmakers say they’re finally cracking down. Over the past week, the Louisiana House of Representatives passed a flurry of insurance-related bills, promising long-awaited reform. But will these new laws actually deliver savings—or are they just another round of political performance?

Governor Jeff Landry has made insurance reform a cornerstone of his administration, pledging to lower rates and rein in litigation. The House has answered with nine key bills aimed at curbing lawsuits, capping damages, and shifting legal burdens. Proponents say the changes will stabilize the market. Critics say the real beneficiaries are insurance companies—not Louisiana families struggling to keep up.

Let’s break down each bill, look at what it does, weigh the pros and cons, and ask the only question that matters: is this really good for the people of Louisiana?

House Bill 34 – Limits Recovery to Paid Medical Expenses

Sponsor: Rep. Brian Glorioso

Summary: This bill allows courts to consider only the actual amount paid for medical treatment, not the inflated amount billed, when awarding damages in auto accident cases.

Pros:

Targets inflated medical bills used to justify larger settlements.
May help insurers reduce claim costs, potentially affecting premiums.

Cons:

Penalizes plaintiffs whose insurers negotiated lower prices.
Could disproportionately hurt the uninsured and underinsured.

Bottom Line: A well-intentioned fix, but without consumer protections, it risks tipping the scales too far in favor of insurers.

House Bill 435 – Caps General Damages at $5 Million

Sponsor: Rep. Peter Egan

Summary: Places a $5 million cap on noneconomic damages (pain, suffering, emotional distress) in all cases, including wrongful death.

Pros:

Reduces the risk of unpredictable and massive jury awards.
Could stabilize liability exposure for businesses and insurers.

Cons:

A fixed cap doesn’t account for the scale of loss in tragic cases.
May leave families of wrongful death victims undercompensated.

Bottom Line: A one-size-fits-all limit sounds good until you’re the one facing a lifetime of loss. Reform shouldn’t mean injustice.

House Bill 439 – Caps Attorney Fees in Small Claims

Sponsor: Rep. Troy Hebert

Summary: Limits lawyers to 10% contingency fees on the first $15,000 in damages in minor auto accident cases.

Pros:

Seeks to prevent “lawsuit mills” from profiting on small cases.
Could reduce minor nuisance lawsuits.

Cons:

May discourage attorneys from taking valid small claims cases.
Limits legal access for low-income residents.

Bottom Line: Could reduce court clog—but at the risk of pricing the poor out of legal help. A win for insurers, not necessarily for justice.

House Bill 431 – Changes Comparative Fault to 51% Rule

Sponsor: Rep. Emily Chenevert

Summary: Prevents plaintiffs who are 51% or more at fault in an accident from recovering any damages.

Pros:

Promotes fairness—those primarily responsible shouldn't profit.
Brings Louisiana law in line with most other states.

Cons:

In complex accidents, assigning exact fault is murky at best.
May prevent recovery in cases where fault is only slightly tilted.

Bottom Line: Reasonable and standard elsewhere—but no miracle cure for our insurance crisis.

House Bill 450 – Ends the ‘Housley Presumption’

Sponsor: Rep. Michael Melerine

Summary: Eliminates the legal presumption that a person in good health before an accident was injured because of that accident.

Pros:

Makes plaintiffs prove their injuries more clearly.
Could reduce questionable or fraudulent claims.

Cons:

Makes it harder for real victims, especially those with delayed injuries, to win valid cases.
Risks shifting the burden unfairly to the injured party.

Bottom Line: More courtroom red tape isn’t always the answer. Real injuries deserve a real chance to be heard.

House Bill 436 – Bars Undocumented Immigrants from General Damages

Sponsor: Rep. Gabe Firment

Summary: Prohibits undocumented immigrants from receiving noneconomic damages (pain and suffering), though they can still recover for medical bills and property damage.

Pros:

Backers say it deters abuse of the legal system.

Cons:

Likely unconstitutional and opens the state to lawsuits.
Creates a two-tier justice system.

Bottom Line: This one is more about political points than policy. It may not survive legal challenge—and doesn’t lower rates for anyone.

House Bill 443 – Requires Pre-Lawsuit Notification

Sponsor: Rep. Chance Henry

Summary: Requires plaintiffs to notify defendants within 10 days of retaining a lawyer if they intend to sue.

Pros:

Gives insurance companies and defendants more time to investigate and possibly settle.
Could reduce unnecessary litigation.

Cons:

Adds pressure to plaintiffs navigating an unfamiliar legal process.
Could disadvantage those without immediate legal support.

Bottom Line: Could be helpful—but only if both sides play fair. Otherwise, just more red tape for regular people.

House Bill 291 – Extends Wrongful Death Deadline to 2 Years

Sponsor: Rep. Jay Gallé

Summary: Gives families two years (instead of one) to file wrongful death lawsuits.

Pros:

Matches national norms.
Gives grieving families a reasonable amount of time to act.

Cons:

Slightly increases liability windows for insurers.

Bottom Line: A humane, sensible reform. This is the kind of change Louisiana needs more of.

House Bill 496 – Protects Against Rate Hikes After One Lapse

Sponsor: Rep. Troy Hebert

Summary: Prohibits auto insurers from raising rates after a single lapse in coverage over a five-year period.

Pros:

Helps those who miss a payment due to financial hardship.
Encourages consumers to return to coverage without fear of a price spike.

Cons:

Insurers may find other ways to offset the rule with hidden fees or underwriting changes.

Bottom Line: A welcome consumer protection—and one of the few bills that directly benefits everyday policyholders.

Final Word: So, Will Insurance Get Cheaper?

Not immediately. And maybe not at all.

Many of these bills focus on limiting lawsuits, reducing damages, or shifting the burden of proof, not actually lowering insurance company profits or improving rate transparency. That’s the problem. For years, Louisiana has passed tort reform after tort reform with little to show for it in the form of lower rates.

What’s missing? Real regulation. Oversight. Transparency. Why are insurance companies charging so much in the first place? Until the Legislature is willing to look insurers in the eye and demand answers, the reforms will always be one-sided.

Signs of Hope: A Step Toward Broader Reform

Still, there are reasons to be cautiously optimistic. A few of these bills—like HB 291, which extends time for grieving families to seek justice, and HB 496, which protects consumers from unfair rate hikes—reflect a deeper awareness of the real struggles Louisiana families face. These are measured, humane changes that prioritize people, not just profits.

Additionally, the bipartisan support seen across several of these bills suggests that insurance reform is no longer a fringe issue—it’s central. Lawmakers across party lines are acknowledging that the system isn’t working. That matters.

If the momentum continues and citizens stay engaged, this could be the beginning—not the end—of meaningful change. The key will be ensuring that future legislation holds insurance companies as accountable as it does consumers and attorneys.

Call to Action

The bills now head to the Louisiana Senate. If you believe insurance reform should help the people, not just the powerful, now is the time to call your Senators.

This is your state. Your paycheck. Your premiums.

Don’t let Baton Rouge decide without your voice.