New Louisiana Laws of Note to Trucking Industry

 

The state of Louisiana has recently enacted a series of legal reforms that will significantly impact the trucking industry. Governor Jeff Landry signed multiple bills into law aimed at curbing lawsuit abuse, lowering insurance costs, and creating a more balanced legal environment for truck drivers and motor carriers. These reforms, supported by the Owner-Operator Independent Drivers Association (OOIDA) and the Louisiana Motor Transport Association (LMTA), are considered a step toward long-needed tort reform in the state.

Modified Comparative Fault Standard – HB431

Effective January 1, 2026, House Bill 431 will shift Louisiana’s legal framework from a pure comparative fault system to a modified comparative fault system. Under the previous system, a plaintiff could recover damages even if they were 99% responsible for an accident. The new law bars recovery if a plaintiff is found to be 51% or more at fault. This is expected to reduce frivolous lawsuits and prevent unfair judgments against truck drivers who may be only minimally involved in a collision.

Stronger “No Pay, No Play” Enforcement – HB434

Also taking effect on August 1, 2025, House Bill 434 raises the financial threshold for uninsured drivers seeking compensation. Previously capped at $15,000 for bodily injury and $25,000 for property damage, the law now prohibits uninsured drivers from recovering the first $100,000 in claims. This change aims to discourage uninsured driving and reduce the number of illegitimate claims that contribute to high litigation rates.

Restrictions on Damages for Unauthorized Immigrants – HB436

House Bill 436, effective August 1, limits the damages recoverable by unauthorized aliens involved in vehicle crashes. The bill bars claims for general damages such as pain and suffering and future wage losses. However, it still allows for recovery of special damages like medical expenses and property loss. This aims to limit inflated damage claims without entirely excluding compensation for verifiable losses.

Eliminating the Housley Presumption – HB450

House Bill 450, now in effect, removes the Housley Presumption, which assumed a causal link between an accident and a plaintiff’s injury without requiring proof. The new law places the burden of proof on plaintiffs, requiring them to present evidence of injury causation. The trucking industry anticipates that this reform will reduce inflated injury claims and lower insurance premiums by discouraging speculative lawsuits.

Dash Cam and Telematics Discounts – HB549

Finally, House Bill 549 introduces a mandatory insurance discount for commercial vehicle policyholders who install operational dash cameras and telematics systems. Set to take effect on January 1, 2026, this law incentivizes the use of technology that can verify accident details, promote safety, and reduce fraud. Proof of installation is required to receive the discount during policy issuance or renewal.

The Louisiana Motor Transport Association has praised the legislation, calling it “meaningful progress” toward addressing the state’s insurance crisis and legal system abuse. While there’s more work to be done, particularly regarding medical billing transparency and phantom damages, these laws are expected to help stabilize insurance costs and provide greater legal protections for the trucking community.

 

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