Louisiana Bans Age-Based Auto Premium Hikes
Louisiana’s making waves in the insurance world. How? By putting its foot down on age-based premium increases for auto insurance. A new law, House Bill 258 (now Act No. 168), makes it crystal clear—insurers can’t penalize you just for hitting 65. It’s about fairness, plain and simple.
This change has already taken effect, starting June 2025. And it’s got a lot of people asking questions. What does this mean for insurers? For drivers? For everyone in between? We’ve got the answers.
What’s Really Happening?
Here’s the deal. Under the new law, auto insurers are no longer allowed to raise your premiums just because you’re 65 or older. That’s it. No ifs, ands, or buts. Legislators call it age discrimination, and they’re not having it.
“But wait,” you ask, “can insurers still adjust premiums for other reasons?” Yep. Absolutely. They can still base rates on legit factors like your driving record or whether you’ve filed claims. But age? Off the table.
What Happens If Insurers Don’t Play By the Rules?
Insurers who step out of line? They’ll face the music. The commissioner of insurance has the authority to bring penalties or regulatory actions against violators. Not following the law isn’t just a slap on the wrist. It’s serious business.
This means insurers operating in Louisiana need to do some homework. They’ve got to review their pricing models. Make changes if necessary. And, yes, be ready for audits. Compliance isn’t optional here.
Why Was This Law Created?
Let’s be real: this law is all about stopping unfair price hikes for senior drivers. Lawmakers wanted to block the practice of slapping older folks with higher premiums just because they hit 65. But here’s a question—don’t older drivers get into more accidents?
Well, yes and no. Stats show that crash rates spike for young drivers, which is why they get surcharged—lots of crashes, lots of claims, pretty open and shut. For older drivers, it’s complicated. According to the National Safety Council, most older adults have lower crash rates than young drivers. The rate actually declines with age through the 65–74 group, and only creeps back up slightly after 75. In 2023, drivers 65–74 were involved in about 4,954 fatal crashes, and those 75 and older in about 3,458. Meanwhile, older drivers made up 19% of fatal crashes in 2021—up from 11% in 2001—but the older driver population has grown a lot, too.
So, is it fair to treat every senior the same? Not really. Some folks are safe and alert behind the wheel long after 65. Others might struggle. The bottom line: your premium should reflect your actual driving record, not just your age.
This law says: prove it. If you’re a good driver, you shouldn’t pay extra because of your birth year. Hiking rates just for turning a certain age? Feels unfair. And with these stats, it’s clear—risk is nuanced, not black-and-white. That’s exactly why this law exists.
What Does This Mean for Senior Drivers?
If you’re 65 or older and see your premiums spike, don’t just shrug it off. Take action. First step? Reach out to your insurer and ask for clarity. Why was the rate increased? Was it age-related? If it smells fishy, you’ve got options. File a complaint with the Louisiana Department of Insurance. They’re there to help.
And hey, even if your premium doesn’t go down, this law ensures it won’t climb for no reason. Fair’s fair.
Ripple Effects for the Insurance Industry
The insurance world isn’t exactly thrilled. Why? Because change isn’t easy. This law forces companies to tweak their policies and pricing structures. Insurers now have to prove their rates are justified by actual risk—not age. And there’s no cutting corners.
For compliance teams, that means digging into data. Models have to be airtight. Documentation? Audit-ready. It’s a lot of work—but it’s the new reality.
Some insiders think this law could set a precedent. Are other states watching? Probably. Nobody’s saying it out loud, but similar measures could pop up elsewhere. It’s not a stretch to imagine this trickling into an industry-wide movement.
What About Younger Drivers?
If you’re under 65, you might think, “This has nothing to do with me.” Not so fast. While this law directly affects senior drivers, it’s also pushing the whole industry toward fairness. Younger drivers benefit from a culture shift—one where rates are based on actual risk, not blanket assumptions.
Who knows? Today it’s about age. Tomorrow it could be about other outdated biases in pricing structures.