This summer, Louisiana lawmakers passed what Governor Jeff Landry has called “the largest tort reform effort in state history.” The 2025 legislative session ended with sweeping changes to our legal and insurance systems, changes that will directly affect injury victims, drivers, and families across the state.
At Saunders & Chabert, our priority is making sure you understand these new rules, how they could impact your case, and what steps you can take to protect yourself. Below, we break down the major bills in plain language, with a focus on what they mean for you.
1. Louisiana Moves to a 51% Bar for Recovery – HB 431 (Act 15)
Effective: January 1, 2026
Louisiana is moving from a pure comparative fault system to a modified comparative fault system. Under the old rules, you could still recover damages even if you were mostly at fault—your award would just be reduced by your percentage of fault. Now, if you are 51% or more at fault, you recover nothing.
What this means for you:
This applies to all personal injury and tort cases, not just car accidents. The stakes are now much higher when fault is disputed. It will take a stronger investigation, evidence, and legal strategy to keep your fault percentage under 51% and preserve your right to recover.
2. “No Pay, No Play” Gets Stricter – HB 434 (Act 16)
Effective: August 1, 2025
If you drive without insurance and are injured in an accident (even one you didn’t cause), you won’t be able to collect any general damages (like pain and suffering) unless your injuries exceed $100,000 in value. This is a massive jump from the previous $15,000/$25,000 thresholds.
What this means for you:
If you’re uninsured, your ability to recover in a claim is severely limited. This is meant to discourage uninsured driving, but it can also leave accident victims without recourse. Having active insurance coverage is now more critical than ever.
3. The Housley Presumption is Gone – HB 450 (Act 18)
Effective: May 28, 2025
For more than 30 years, Louisiana law assumed that if you didn’t have documented prior injuries, any new injuries after an accident were caused by that accident. HB 450 repeals this presumption. Now, you must affirmatively prove that your accident caused your injuries.
What this means for you:
This puts more pressure on injured parties to collect medical documentation, expert testimony, and strong evidence early on. Without it, you risk losing your right to recover for your injuries.
4. New Limits on Medical Expense Recovery – SB 231 (Act 466)
Effective: January 1, 2026
In auto accident cases, you can now only recover the actual amount paid for your medical bills, not the higher amount originally billed by a provider. Juries will see both the billed and paid amounts, with narrow exceptions for Medicaid and workers’ comp cases.
What this means for you:
This change can significantly reduce damage awards, especially for those with private insurance that negotiates lower rates. It’s designed to prevent “phantom damages,” but it also means plaintiffs may recover far less for medical costs.
5. Restrictions for Undocumented Immigrants – HB 436 (Act 17)
Effective: August 1, 2025
Those not lawfully present in the U.S. are now barred from recovering general damages or lost wages in auto accident lawsuits, except in uninsured/underinsured motorist claims where they are a named insured.
What this means for you:
This narrows legal remedies for some of the most vulnerable people in our communities. If you or a loved one is affected, you should seek legal advice immediately to explore available protections.
6. More Oversight on Insurance Rates – HB 148 (Act 11)
Effective: May 28, 2025
The state’s Insurance Commissioner now has greater authority to reject excessive rate increases that would result in “unreasonably high profits” for insurers. The law also adds actuarial standards and transparency requirements.
What this means for you:
While it doesn’t guarantee lower premiums, this law is intended to add a layer of accountability to the insurance industry.
7. Dash Cam Discounts for Commercial Vehicles – HB 549
Effective: January 1, 2026
Insurance companies will be required to offer premium discounts to commercial vehicle owners who install operational dash cameras and telematics systems that meet state standards.
What this means for you:
If you run a business with commercial vehicles, this could be an opportunity to save on premiums while also protecting your drivers and securing valuable evidence if an accident happens.
What This Means Moving Forward
Some of these laws (like HB 450 and HB 148) are already in effect. Others, like the 51% fault rule and medical expense recovery limits, take effect January 1, 2026. Together, they will reshape Louisiana’s legal playing field, making it harder for injury victims to recover damages and increasing the need for early, aggressive legal representation.
Here at Saunders & Chabert, we’ve already adapted our strategies to account for these changes. If you’ve been injured in an accident or believe these new laws could affect your rights, now is the time to act. The sooner we start building your case, the better we can protect you under these new rules. Call us today or visit our website to request a free consultation. We’re here to fight for what you deserve, no matter how the laws change.