Louisiana Military Auto Insurance Discount: What You Need to Know About LA 173

Are you Louisiana military personnel being told that insurance companies don't have to honor the state's military auto insurance discount? You're not alone, and you're definitely not wrong to be frustrated. Let's set the record straight about Louisiana Act 173 and your rights under state law.

The Reality: It's Not Optional for Insurance Companies

Louisiana Act 173 of 2024, which updated Louisiana Revised Statutes 22:1482 and took effect January 1, 2025, requires every auto insurance company licensed in Louisiana to provide a 25% discount on liability insurance premiums to Louisiana residents who are: active-duty military personnel, military reservists, Louisiana Air National Guard, and Louisiana Army National Guard. This isn't a suggestion or a nice-to-have policy - it's the law.

The statute uses clear, mandatory language: "Every motor vehicle insurer authorized to transact business in this state shall provide" the discount. When companies tell you they don't "have to" honor it, they're either misinformed or hoping you'll give up.

The law also offers a tax credit to insurers who choose to extend the 25% discount to retired military personnel and veterans with a disability rating of 50% or more. Because the discount is supported by a tax incentive rather than a mandate, it remains at the insurer's discretion to offer it to these groups. However, many insurers do provide the discount to these qualifying individuals.

Who Qualifies for the Discount?

As of January 2025, the following groups are entitled to the 25% discount:

• Active duty military personnel based in Louisiana

• Military reservists based in Louisiana

• Louisiana Air National Guard members

• Louisiana Army National Guard members

• Retired military personnel (new as of 2025)

• Veterans with 50% or higher disability rating (new as of 2025)

The discount applies to you, your spouse, and dependent children on the same policy.

What Companies are honoring the discount for retired military personnel and veterans with 50% or higher disability rating?

As of right now, members have reported that USAA and State Farm are honoring this new addition to the discount program. If additional insurance companies choose to opt in, we will update our membership accordingly. If you're aware of an insurer that hasn't been mentioned but is offering this discount, please submit that information to the department so we can notify all members.

What to Do If You're Being Denied

Step 1: File an Official Complaint

Call the Louisiana Department of Insurance at 800-259-5300 immediately. Report any company that refuses to honor the military discount. The Department has enforcement authority to compel compliance.

Step 2: Get the Proper Documentation

Request the official "Louisiana Application for Military Discount" form from your insurance agent or the Department of Insurance. This form must be:

• Completed accurately

• Signed by your commanding officer

• Submitted to your insurance company

• Kept on file for your records

Step 3: Document Everything

Keep detailed records of:

• Which companies denied the discount

• Names of representatives you spoke with

• Dates and times of conversations

• Any written correspondence

Step 4: Know Your Rights

Remember that this discount has been mandatory since 2004 and was strengthened in 2024. You're not asking for a favor - you're claiming a legal entitlement.

Major Insurance Companies Operating in Louisiana

All licensed insurers in Louisiana must honor this discount for the mandated list outlined above, including:

• State Farm

• GEICO

• Farm Bureau

• Allstate

• Progressive

• And any other company licensed to sell auto insurance in Louisiana

If any of these companies tell you they don't offer the military discount, they're either uninformed about Louisiana law or hoping you won't pursue it.

The History Behind the Law

Louisiana's military auto insurance discount isn't new - it's been on the books since 2004. The discount started at 12.5%, increased to 25% in 2006, and was recently expanded in 2024 to include more military families. This law exists because Louisiana recognizes the sacrifices made by military personnel and their families.

Don't Give Up

If you're facing resistance from insurance companies, remember:

• You're not asking for charity - this is a legal requirement

• The law is clear and unambiguous - there's no wiggle room for companies

• You have enforcement mechanisms - the Department of Insurance will back you up

• This affects all military families - your complaint helps others facing the same issue

Taking Action

Louisiana military families deserve the full benefits provided by state law. Don't let insurance companies convince you that Act 173 is "useless" or that they don't have to comply. The law exists, it's enforceable, and you have every right to demand compliance.

If you're still having trouble after following these steps, consider reaching out to your local military legal assistance office or veteran service organizations for additional support.

We encourage all members to reach out to their state delegates and representatives to advocate for making this discount mandatory for retired military personnel and veterans with disability ratings of 50% or more. While the current tax incentive structure has motivated some insurers to participate voluntarily, a mandatory provision would ensure that all qualifying veterans and retirees receive this well-deserved benefit regardless of which insurance company they choose. Your voice matters—contact your elected officials today to express your support for strengthening this statute and guaranteeing these discounts for those who have served our country.

Remember: You've served Louisiana and our country. Louisiana law ensures you get the discount you've earned.

Have you successfully obtained your LA 173 military discount, or are you still facing resistance from insurance companies? Share your experience to help other military families navigate this process.