
Louisiana’s insurance market faces enduring challenges from high premiums and legal complexities, though recent reforms offer a glimmer of hope. With average auto insurance costs nearly 40% above the national average and homeowners’ insurance exceeding it by 54%, residents struggle with affordability. Compounding these issues are the state’s history of severe weather events and pervasive litigation, which have driven insurers to withdraw from high-risk areas.
In 2024, reforms such as S.B. 355 introduced greater transparency in third-party litigation funding, aiming to curb excessive legal costs. However, further measures, including changes to the state’s collateral source doctrine, were vetoed, signaling the continued uphill battle to address systemic cost drivers.
Louisiana also faces the nation’s second-highest vehicle insurance rates, exacerbated by a high frequency of injury claims, aggressive litigation, and a substantial underinsured motorists rate. Despite slight improvements in income growth, affordability remains elusive. Stakeholders emphasize that deeper reforms and targeted legislation are essential to stabilize the market and protect consumers.