New Louisiana laws aim to cut auto insurance costs, adjust taxes in 2026

A new set of Louisiana laws took effect on Jan. 1, 2026, primarily to lower the state's leading auto insurance rates, while others address taxes, health care, and government transparency.

Louisiana drivers paid the highest auto insurance rates in the country in 2025, according to several national reports.

MarketWatch has ranked Louisiana as the most expensive state for auto insurance in 2025, with average annual premiums of $3,481.

Gov. Jeff Landry said the new insurance laws take a "balanced approach" by limiting excessive lawsuit awards while also curbing certain insurance company practices.

"These reforms hold both sides accountable," Landry said previously, referring to insurers and personal injury litigants. Ahead of the implementation of the new laws, State Farm, Louisiana's largest auto insurer, announced a 5.9% rate decrease last month.

Several of the new statutes directly target insurance practices and litigation rules.

Under Act 15, drivers found to be at least 51% at fault for a crash are barred from receiving damage awards for their injuries. Act 466 changes how medical costs are considered in personal injury lawsuits, a move lawmakers say could reduce inflated claims.

Act 85 prohibits insurers from passing certain advertising costs on to customers, while Act 476 protects policyholders from rate increases linked to lapses in coverage. Act 429 requires insurers to notify the state Department of Insurance when they change policy-writing practices in specific regions.

Trucking companies may benefit from Act 19, which mandates a 5% insurance discount for companies that install dashboard cameras in large trucks.

Other insurance-related changes include Act 227, which requires health insurers to cover integrative cancer treatments such as acupuncture, scalp cooling systems, and cryotherapy.

Beyond insurance, lawmakers approved several tax-related measures.

Act 423 creates a tax credit for donations to public schools that receive a letter grade of D or F, while Act 411 modifies the assessment and allocation process for ad valorem taxes. Act 283 establishes a property tax exemption for personal aircraft weighing less than 7,000 pounds.

Additional tax changes include new cigar tax rates under Act 266, expanded deductions for bank property under Act 104, and income tax deductions for certain hardship withdrawals from retirement accounts under Act 251.

Several laws target workforce development and housing. Act 376 establishes a work-based learning tax credit for businesses employing apprentices, interns, and youth workers. Act 473 expands deductions for homeowners who retrofit properties to meet "fortified home" standards.

Other notable laws include Act 387, which requires short-term rental platforms to provide renters with itemized fee and tax disclosures, and Act 162, which mandates that the Louisiana Board of Ethics record and livestream its meetings.

Act 77 expands the state health department's authority to establish rules for hospitals, while Act 501 increases fees charged by the insurance commissioner for licensing and other services.

Lawmakers say the wide-ranging measures are intended to improve affordability, transparency, and economic competitiveness across the state. However, critics continue to debate whether the insurance reforms will lead to lasting rate reductions for drivers.