Auto insurance consumers may eventually see a reduction in rates

Louisiana drivers pay some of the highest auto insurance premiums in the nation.


This act was designed to change how courts handle court cases involving car accidents.

“What the collateral source damage that we approved did limits the plaintiffs recovery of medical expenses to one now that their healthcare provider actually paid not te amount that was billed by the medical provider and then 40 percent of the difference between the amount billed the contracted amount paid by the health insurer.” said Senator Jay Luneau

The National Association of Mutual Insurance Companies sent out a statement saying the tort reform will be a positive change.

“Louisiana has some of the highest private passenger and commercial auto insurance premiums in the country, which are driven by the cost of claims that is, in turn, driven by certain aspects of the Louisiana civil justice system. The passage of HB 57 is a good first step in improving that system.” said Erin Collins, vice president – state affairs

“The changes outlined in the bill should have a positive impact in reducing those claims costs, which NAMIC believes is the only way to produce meaningful, long-term benefits. The mere fact that tort reform legislation is enacted in Louisiana to address cost drivers will likely encourage more companies to want to do business in the state, increasing competition to the benefit of consumers.” said Erin Collins, vice president – state affairs:

The new law becomes effective on January 1st of next year.