Louisiana Passes Tort Reform Legislation Targeting Insurance Crisis

On May 28, 2025, Louisiana Governor Jeff Landry signed a package of bills constituting substantial tort reform, particularly with respect to automotive claims. In a press conferencing announcing the reforms, Governor Landry cited both increasing insurance profits and “a cultural problem of frivolous litigation,” as drivers of reform. The measures signed include the following:

HB 148: Insurance Commissioner Authority

Grants the Insurance Commissioner greater authority to regulate insurance rates.

HB 431: Comparative Fault

Bars drivers responsible for at least 51% of an accident from receiving a damage award to cover their injuries. This is a departure from Louisiana’s Under current comparative fault scheme.

HB 434: No Pay No Play

Increases the threshold for uninsured motorists to collect damages from $15,000 to $100,000.

HB 436: Undocumented Immigrants

Prohibits undocumented immigrants who are injured in car accidents from collecting general damage awards.

HB 450: Housley Presumption

Requires plaintiffs in car accident claims to show that the injuries actually occurred during the accident.

Governor Landry suggested that the legislature would continue to work through this session to pass additional bills aimed at lowering insurance rates. The newly passed measures largely go into effect January 1, 2026.