Louisiana lawmakers are considering a new bill, House Bill 258, which would impose penalties on insurance carriers that raise automobile insurance rates solely because a policyholder turns 65, according to a report from AM Best.
The bill seeks to amend existing regulations by adding a penalty of up to $10,000 per violation, targeting insurers who adjust rates based on age without considering other factors such as driving history or risk.
Currently, state law prohibits insurers from increasing premiums based solely on a policyholder's age. However, HB 258 would strengthen these protections by imposing additional penalties for noncompliance.
Proponents argue that the bill is necessary to protect older drivers from unfair rate increases, particularly as Louisiana grapples with high auto insurance premiums. According to the report, the bill has faced opposition from the insurance industry, with the American Property Casualty Insurance Association (APCIA) asserting that it unnecessarily duplicates existing regulations.
“Insurers are already prohibited from increasing premiums solely on the grounds that a policyholder is 65, and insurers are subject to fines and penalties for market conduct violations,” said Hilary Segura, vice president of state government relations at APCIA, in an email.
The legislation comes as Louisiana lawmakers continue to explore solutions to reduce auto insurance costs.
Public hearings on the issue have been ongoing since the fall of 2024, and Insurance Commissioner Tim Temple has made lowering auto rates a top priority for 2025. Temple has suggested that legal reforms may be part of the solution.
In 2020, Louisiana implemented tort reforms aimed at reducing auto insurance rates, but Temple has criticized those changes as watered-down compromises.
“My understanding is that the courts haven't had a lot of opportunity for that reform to take effect, if it truly was going to make a difference,” Temple said. “This time the difference is that we’ve gone another four years. We have costs that continued to climb. People and businesses are at that breaking point where it's just not working anymore.”
Rep. Sylvia Taylor, a Democrat representing House District 57 and sponsor of HB 258, could not be reached for comment, the report said.
According to BestLink, the top five private passenger auto insurers in Louisiana in 2023, based on direct premiums written, were State Farm Group (30.48%), Progressive Insurance Group (20.85%), Allstate Insurance Group (12.39%), Berkshire Hathaway Insurance Group (9.85%), and USAA Group (6.16%).
