Louisiana lawmakers are looking at a new bill that could change how insurance companies set auto rates for drivers over 65. House Bill 258 aims to prevent insurers from raising premiums just because a policyholder turns 65 years old. If passed, this bill would impose fines of up to $10,000 for each violation, targeting companies that adjust rates based solely on age without considering other factors like driving history or risk.
Currently, Louisiana law already prohibits insurers from increasing rates based solely on age. However, this new bill seeks to strengthen those protections by adding penalties for companies that do not comply. Supporters of the bill believe it is crucial to protect older drivers from unfair rate hikes, especially as many in Louisiana struggle with high auto insurance costs.
The bill faces pushback from the insurance industry. The American Property Casualty Insurance Association (APCIA) argues that it duplicates existing rules and may not be necessary. Hilary Segura, an APCIA vice president, stated that insurers are already prohibited from raising premiums based on age alone and can face penalties for market conduct violations.
This legislative effort comes as Louisiana lawmakers continue to search for solutions to lower auto insurance costs. Public hearings on this topic have been ongoing since late 2024. Insurance Commissioner Tim Temple has made reducing auto rates a priority for 2025, suggesting that legal reforms could be part of the solution. In 2020, Louisiana implemented tort reforms to help lower rates, but Temple criticized those changes as insufficient.
He expressed concern that the courts have not had enough time to see the effects of those reforms. Temple noted that costs have continued to rise, putting pressure on people and businesses.
Rep. Sylvia Taylor, a Democrat who sponsors HB 258, has not commented publicly on the bill yet. The top five auto insurers in Louisiana, based on premiums written in 2023, include State Farm, Progressive, Allstate, Berkshire Hathaway, and USAA.
As the discussions continue, many are watching closely to see how this bill might impact older drivers and the overall insurance market in Louisiana.