Louisiana Governor Landry Now Serious About Insurance Rates

BATON ROUGE, LA

Louisiana Governor Jeff Landry Addresses Automobile Insurance Rates in Press Conference

Louisiana Governor Jeff Landry held a press conference on Wednesday where he outlined his vision for finally tackling the problem of outrageous insurance rates being paid by the citizens of Louisiana.  Since this was a key issue that Landry campained on, this is very welcome news for those who supported him. 

Governor Landry began the insurance portion of his press conference with a powerful statement.

Today, I'm not here to help any lawyers, and I'm not here to help any insurance companies.  I'm here to help the citizens of this state.

In his press conference, Landry outlines a comprehensive plan to lower Louisiana's high insurance rates by addressing issues on both the legal and insurance company sides, advocating for a "balanced approach" that he says has been lacking.  

Landry Outlined Key Issues in First Identifying the Problem 

Louisiana families are facing a crisis due to the high cost of automobile and homeowners insurance.  Landry pointed out that despite the fact that insurance companies have been reporting record profits, insurance rates for citizens continue to rise.   He also recognized that past legislative efforts focused on insurance have yielded little improvement. 

 Landry also outlined some disturbing statistics that highlight the issues facing Louisiana residents.   

 Data Analysis Reveals Key Discrepancies 

Accident frequency is in line with the national average.  This means we don’t have more accidents on average than any other state.  Our vehicle repair costs are in line with the national average.  

Minor injury claim severity is almost double the national average. 

Major injury claim severity is less than the national average. 

Insurance companies' loss ratios are better in Louisiana than in Texas and Florida, suggesting higher profitability in Louisiana. 

 Landry’s Proposed Legislative Actions (A Balanced Approach) 

These are a few things Governor Landry proposes to address the crisis. 

• Reining in Lawyer Advertising: Landry told lawmakers he pledges to sign legislation, that was vetoed by previous administrations, to curb excessive lawyer advertising, believing it contributes to a "cultural problem" driving minor injury claims. 

• Preventing Insurance Companies from Passing on Advertising Costs: Legislation will be supported to prevent insurance companies from including their advertising expenses in premium increases, mirroring a practice in Texas. 

• Reversing the "Hausley" Judicial Precedent: Landry said he intends to sign a bill (previously vetoed) to reverse this precedent, requiring claimants to prove their injuries were directly caused by the accident, thus targeting frivolous lawsuits related to minor injuries. 

• Strengthening "No Pay, No Play" Laws: Landry advocates for raising the award exclusion limits for uninsured motorists from $15,000 to $100,000 to discourage driving without insurance and impact minor injury claims involving uninsured drivers.    

• Prohibiting Texting and Social Media While Driving: Landry supports enacting a law similar to Texas to combat distracted driving, which contributes to accidents and insurance costs. 

• Limiting Benefits for Undocumented Immigrants: He proposes severely limiting the rights of individuals in the country illegally to benefit from the insurance system. 

• Requiring Premium Discounts for Trucks with Dash Cameras: A minimum 5% discount should be mandated for large trucks with operable dashboard cameras, promoting safety and potentially reducing litigation. 

• Prohibiting the Use of Credit Checks for Premiums: Following a recommendation from Forbes, Landry supports banning the use of credit checks to set insurance premiums. 

• Reforming Penalties for Lapsed Coverage: Penalties for individuals with periodic lapses in coverage (without driving uninsured) should be reformed to prevent arbitrary premium increases. 

 Landry emphasized that by holding both trial lawyers AND insurance companies accountable, we can lower insurance rates in Louisiana.   He said he wants to take a “multi-pronged legislative approach” aimed at balancing the interests of consumers, insurance companies, and the legal system to ultimately lower insurance rates in Louisiana. 

You can watch the entire press conference below.