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The Louisiana House of Representatives passed six auto insurance reform bills on April 28, aimed at stopping legal system abuse.

The new bills introduce a 51% fault bar, change how medical damages are presented in personal injury cases, set a $100,000 threshold for uninsured drivers, establish a $5 million annual cap on damages and overturn a judicial precedent between crashes and injuries.

“Tort reform is crucial to address the negative impact of excessive litigation, particularly by billboard attorneys, on Louisiana's property/casualty insurance market, according to Triple-I. “Louisiana is among the states facing escalating auto and home insurance costs due to legal system issues.”

The new bills up close:

  • House Bill 34 allows insurance company lawyers to tell jurors amounts paid for medical bills.
  • House Bill 431 states if a plaintiff is at least 51% responsible for their own injuries, they would no longer be eligible for compensation.
  • House Bill 435 places a $5 million annual cap on damages for pain and suffering.
  • House Bill 436 forbids undocumented immigrants injured in car accidents from collecting general damages.
  • House Bill 450 overturns a judicial precedent regarding causal connections between crashes and injuries.

“Widespread legal system abuse is clogging the state’s court system with frivolous lawsuits and increasing prices for Louisiana consumers, imposing steep estimated costs of $1,011 to their annual household expenses,” Triple-I’s Mark Friedlander told BestWire. “Louisiana’s private passenger auto insurance affordability of 2.67% of median household income makes it the least affordable state for personal auto coverage in the U.S.”

Meanwhile, the average cost of car insurance in Louisiana is $1,568 per year for full coverage, with USAA offering the lowest price in the state at $895 per year.

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