Tort Reform Spurs Auto Rate Decreases Across Louisiana Insurance Market

Louisiana’s auto insurance market is beginning to show signs of stabilization following the passage of tort reform legislation in 2025. According to Insurance Commissioner Tim Temple, more than 20 auto insurers have filed rate decreases since mid-2025. The reductions include filings from major carriers such as Progressive and State Farm, impacting well over a million policyholders statewide.

For claims adjusters, the changes highlight how reduced accident frequency and litigation reforms can directly influence claim severity and pricing. Louisiana has long struggled with a bodily injury claim frequency more than double the national average, a trend that has historically driven higher settlement costs and increased pressure on claims operations. Regulators estimate the state’s legal environment has imposed a $965 annual tort tax on residents, underscoring the connection between legal system abuse and premium affordability.

Temple cautioned that individual rates will still vary based on risk factors, and warned that regulatory overreach in rate-setting could slow recovery. The failure of legislation targeting nuclear verdicts of $10 million or more also leaves ongoing exposure for insurers and claims professionals managing high-severity losses. Louisiana’s continued placement on the American Tort Reform Foundation’s ‘judicial hellholes’ list remains a concern for carriers evaluating long-term market participation.

The commissioner pointed to Florida as a reference case for what sustained reform can achieve. After sweeping tort changes in 2022 and 2023, Florida saw a significant drop in claim-related litigation and renewed insurer interest. Seventeen new insurers entered the market, while rate decreases followed for both homeowners and auto lines, including substantial cuts at Citizens Property Insurance.

Florida officials, including Governor Ron DeSantis, credit the reforms with stabilizing the market and returning policies to the private sector. For adjusters nationwide, the comparison reinforces how legislative environments shape claim outcomes, settlement practices, and overall workload. Louisiana’s experience suggests that measurable benefits from tort reform take time, but early rate filings indicate momentum that could reduce long-term claim costs if reforms hold.