FOR IMMEDIATE RELEASE

May 15, 2025

 

LDI Review of NAIC Data Shows Frequent Bodily Injury Claims and Excessive Litigation Drive High Auto Rates in Louisiana

Louisiana has a higher rate of bodily injury claims and insured losses compared to most of its neighboring states, according to data from the National Association of Insurance Commissioners (NAIC).

“The numbers overwhelmingly show that Louisiana’s bodily injury claims environment is unsustainable compared to national and regional markets,” said Insurance Commissioner Tim Temple. “Our state is generating massive financial losses from bodily injury claims despite our relatively small population. The findings are crystal clear—we must reduce bodily injury claims and excessive litigation to lower the cost of auto insurance in Louisiana.”

While Louisiana represents only 1.4% of the U.S. population, it is responsible for 3.65% of the nation’s bodily injury claims, the NAIC reports. Drivers from Louisiana file more than twice as many bodily injury claims per capita as the national average.

Over a 10-year period, Louisiana accrued $10.26 billion in bodily injury losses on 645,770 claims, which is substantially more than Alabama ($5.04 billion on 311,967 claims), Mississippi ($2.82 billion on 181,419 claims), Arkansas ($2.27 billion on 196,203 claims), and Tennessee ($5.68 billion on 334,874 claims). This means Louisiana is generating massive financial losses from bodily injury claims, placing it among the worst states in the region for total bodily injury costs.

“Unless we pass meaningful legal reform that addresses this issue, our state will continue to pay the highest auto insurance rates in the nation,” said Commissioner Temple. “I ran for this office to deliver real relief to the people of Louisiana, and I refuse to accept the status quo that encourages abuse of the system for the benefit of only a select few. The time to act is now."

About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by downloading our LDIConnect mobile app on the Apple App Store or Google Play Store, calling us at 800-259-5300 or visiting www.ldi.la.gov.