Committee defers bill that would let Louisiana motorists buy out-of-state auto policies if rates don’t drop

The House Civil Law and Procedure Committee voluntarily deferred House Bill 287 after sponsor Representative Bacalhau proposed allowing Louisiana motorists to purchase auto insurance issued under Texas, Arkansas or Mississippi law if the legislature does not achieve a 7% reduction in state auto insurance rates by July 1, 2026.

The measure’s sponsor said the plan is a market-opening backstop 'if we can’t fix the insurance crisis' and described the proposal as a one-and-a-half-year trigger: 'Nothing. What it says is if we don't do our job such that the rates in Louisiana for auto insurance don't go down by measly 7% ... then on 07/01/2026 ... Louisiana auto owners can buy their insurance policies from Texas, Arkansas, or Mississippi.' The sponsor framed the bill as a challenge to the legislature to lower rates before the out-of-state option would take effect.

Why it matters: committee members and the Department of Insurance warned the change would raise practical and legal issues, including agent licensing, whether other states would allow reciprocal sales, and the effect of applying other states’ tort laws to incidents…