The insurance industry is one of the most powerful and corrupt industries in the country. The reason for that is they made over $169 billion in profits in 2024. Due to their power and huge advertising budgets to trick the public and local governments, they have quietly pushed harmful legislation that will impact so many Louisiana, including thousands of poor people. Insurance companies are in business to minimize risk. Statistically, poor people tend to get injured more because they work higher risk jobs. Insurance companies circumvent paying legitimate claims by pushing legislation that minimizes risk. Essentially, they create laws that negatively impact injured victims. Below is a summary of recent laws in Louisiana that were recently passed by our government. It is imperative for every single citizen to be aware of what’s happening so that future attempts at passing more pro-insurance laws are stopped. The sections below outline the key 2025 new Louisiana laws and legislative changes that could dramatically affect your daily life, business, and community.
No Pay/No Play 2025 Louisiana Legislative Updates
One of the major 2025 Louisiana legislative updates revolves around the state’s No Pay/No Play law. This law penalizes drivers who operate a vehicle without insurance by limiting their right to recover damages, even if another driver causes the accident. Essentially, if you do not have insurance and are injured due to someone else’s negligence, the first $100,000 in damages is barred from recovery. It is now vital to have car insurance in Louisiana. If you are injured and not at fault for a car accident, if you do not have insurance starting in August, you will not be able to recover damages for your injuries.
"There are several other laws that were passed that are all directed at lower-income families and minorities. This is the power these insurance companies hold, and that’s why it’s so important to be educated on what these laws mean. “Tort reform” is terrible for anybody that’s not making $169 billion in profits every year."
Increased No Pay/No Play Threshold
Starting August 1, 2025, HB 434 raises the No Pay/No Play injury damage threshold from $15,000 to $100,000, preventing uninsured drivers from recovering the first $100,000 in injury damages, even if they are not at fault. This means uninsured drivers injured in a crash generally cannot sue for the first $100,000 in injury damages.
This change increases the financial risk of car accidents for uninsured drivers, encouraging more drivers to maintain valid auto insurance coverage in Louisiana.
General Damages Prohibited for Undocumented Immigrants
House Bill 436 prohibits courts from awarding general damages to noncitizens starting on August 1, 2025. If someone without legal authorization is injured in Louisiana, they can no longer sue for non-economic damages like pain and suffering. This bill is a major topic of discussion in our state legislature, as ‘legal authorization in Louisiana’ is not a defined term and is a constitutional violation.
While economic damages like medical bills may still be recoverable, this change limits the type of compensation available to immigrants injured in accidents. This law is wholly unconstitutional, no matter your political view. The law will be challenged and most likely overturned.
Insurance Rate Oversight and Transparency
House Bill 148 grants the Insurance Commissioner authority to determine if insurance rates are excessive and requires companies to disclose past premiums to ensure transparency in rate filings. Starting on August 1, 2025, the Commissioner can reject unreasonably high rates and require companies to be transparent about their premium histories.
This change can lead to fairer insurance pricing in Louisiana, potentially lowering costs for insured drivers and impacting settlement valuations when insurance policy limits are relevant to a claim.
Other Accident and Injury Legislative Updates in Louisiana
The 2025 Louisiana legislative session also introduced important updates to how accident and injury cases are decided. One of the most significant shifts involves how fault is determined and affects your ability to recover damages.
Modified Comparative Fault with 51% Bar
House Bill 431 changes Louisiana’s fault system to a modified comparative fault model with a 51% bar to recovery, starting January 1, 2026. If you are found to be 50% or less at fault, you can still recover damages, but your percentage of fault will reduce your compensation.
This major legislative change could reduce or eliminate compensation for those primarily at fault for an accident. It makes clear, detailed evidence even more critical when proving liability in personal injury cases.
Overruling Housley v. Cerise
House Bill 450 overrules the Louisiana Supreme Court decision in Housley v. Cerise. The Housley decision created a legal presumption that if a plaintiff was healthy before an accident but injured afterward, the accident caused the injury unless proven otherwise. Overruling this case removes that presumption.
Injury victims now have a higher burden of proof to directly connect their injuries to an accident, which may make recovering damages more challenging without strong medical documentation and expert testimony.
Premium Discounts for Dashboard Cameras
House Bill 549 provides insurance premium discounts for commercial vehicles equipped with dashboard cameras starting January 1, 2026. Dash cam footage can provide important evidence in accident claims, protecting drivers from false allegations and expediting settlements.
Legislative Updates That Were Deferred
Some bills introduced during the 2025 Louisiana legislative session were deferred, meaning they did not come into effect this year. While these bills are not currently active, they could return in future legislative sessions. Shamieh Law remains vigilant about tracking these proposed changes to inform our clients and community about potential impacts on their rights and claims.
“It’s common knowledge that insurance companies fail to treat people fairly – why should we let them influence our laws? A jury of peers is the proper entity to determine what an injured person’s damages are – not the entity responsible for paying such damages.” -Myles Lenz, Partner at Shamieh Law
Venue Rules for Uninsured/Underinsured Motorist Policies
House Bill 336 proposed changes to venue rules for cases involving uninsured and underinsured motorist policies. The bill aimed to adjust where lawsuits regarding UM and UIM coverage could be filed.
Cap on General Damages
House Bill 435 sought to cap general damages at $5,000,000 in civil lawsuits. This would grant limited compensation for pain and suffering and other non-economic damages to a maximum of $5 million per case.
Duty to Mitigate Using Health Insurance
House Bill 440 would have required claimants to mitigate damages by using their health insurance coverage. This would require injured parties to use their own health insurance to reduce medical expense claims in lawsuits.
Plaintiff Notice Requirements
House Bill 443 proposed additional notice requirements for plaintiffs in civil cases. This bill would have imposed new obligations on injury victims and their attorneys to provide specific notices during litigation.
Attorney Fees Regulation
House Bill 449 aimed to change how attorney fees are handled in certain cases. The bill proposed adjustments to how lawyers could collect or structure their fees.
Restrictions on Attorney Advertising
House Bill 677 would have imposed strict restrictions on attorney advertising within Louisiana. This bill aimed to regulate how law firms advertise their services to the public.
One-Sided Loser Pays Bill
Senate Bill 148 proposed a one-sided loser-pays system, requiring the losing party to pay the winning party’s legal fees under certain circumstances. If enacted, this bill would increase the financial risks for plaintiffs who lost their cases.
We Make Education and Adapting to Changes in Our Legal System a Priority
At Shamieh Law, our Louisiana injury attorneys believe staying informed about important legislative updates is vital to protecting and championing our clients’ best interests. From new insurance laws to changes in personal injury rules, our attorneys and staff remain current on every shift that could impact your case, recovery, and future.
If you have questions about how these new 2025 Louisiana laws could affect you or your loved ones, we’re here to help. Contact Shamieh Law today. We’ll take time to listen, guide you with care and knowledge, and ensure you are never just another case number because at Shamieh Law, you’re family.
