All residents in Louisiana are required to be covered by car insurance. Those found driving without insurance are not only subjected to penalties and fines, but they are also not permitted to make insurance claims regardless of who is guilty in the accident. Read and learn more about Louisiana car insurance laws, rates, programs and discounts.
Insurance Regulation in Louisiana
All matters related to Louisiana insurance are all regulated by the Louisiana Department of Insurance (DOI). The responsibilities of DOI include:
- Investigating insurance fraud
- Approving and reviewing insurance rates
- Enforcing and making insurance rules
- Assisting consumers with complaints and concerns.
If you have a dispute or an unresolved concern with your car insurance provider, you must file your complaint through an online form or request a form by phone. NOTE: Your auto insurance company will not cancel your policy or raise your rates for filing a complaint.
Required Car Insurance in LA
For you to fulfill a mandatory Louisiana auto insurance law, you need to carry a liability insurance to cater for injuries and damages following a car accident you cause. The following minimums must be contained in your liability car insurance:
- $15,000 of bodily injury coverage per person
- $25,000 of property damage coverage
- $30,000 of bodily injury coverage per accident.
Remember that for greater protection, you can always opt to purchase higher coverage limits.
Insurance and Vehicle Registration
For you to register your car or renew your registration in Louisiana, You must have valid liability insurance. The LA Office of Motor Vehicles (OMV) verifies car insurance electronically. The OMV accepts the following as proof of insurance:
- Insurance card issued by your auto insurance company
- Copy of your insurance policy
- Copy of your policy declaration page.
Optional LA Car Insurance
Besides the Louisiana auto insurance laws, there are several other optional coverage types that can help protect you further financially. Various types of optional coverage are offered by Most of the LA car insurance companies as shown below:
- Collision – Covers accident-related damages to your car.
- Comprehensive – Covers non-collision related damages to your car, i.e., those resulting from theft or vandalism.
- Underinsured/ Uninsured motorist (UIM) – Pays for your own injuries or damages to property when you’re involved in a car accident driven by a driver whose insurance is insufficient to cover your costs or simply an uninsured driver.
Car Insurance Violations & Penalties
The following are factors that will guarantee you to face penalties with regards to insurance:
- If you’re unable to provide proof of current insurance
- If your policy has been canceled
- If there’s been a lapse in your policy.
Proof of Insurance
There are several ways the Louisiana OMV uses to verify your auto insurance:
- The OMV must be notified by Car insurance companies of canceled or expired car insurance policies
- If stopped by a police officer, you must produce proof of insurance.
To prove your insurance, you can produce:
- Declaration page of your insurance policy
- Insurance card
- Insurance policy itself
- Image of your insurance card on a mobile device.
If caught driving without proof of insurance, you’ll face:
- Removal of your license plate and you’ll be given a temporary Vehicle Use Authorization (this will give you allowance of 3 days to provide proof of insurance)
- Impounding of your vehicle.
Car Insurance Cancelation
There are various reasons that can force your auto insurance company to cancel your insurance policy within a period of 60 days of purchase. If they decide to cancel your policy, they will notify you within:
- 10 days – if you didn’t pay your premium
- 20 days – for accident, a traffic violation or any other reason
- After 60 days – for not paying your insurance premium, making a false claim or for vehicle registration suspension.
Again, your insurance company is obliged to notify you of any nonrenewal or cancelation:
- Within 10 days – if didn’t pay your premium
- Within 30 days – if it’s canceled for any other reason
- No later than 20 days – if they aren’t renewing your policy.
Reinstating Your Driving Privileges
The following are the conditions you have to meet in order for your cancelled privileges to be reinstated:
- Take proof of insurance to an OMV office
- Acquire minimum liability insurance
- Pay a fine in the margins of $100 on your first offense, and a fine of $250 on a second offense. For Subsequent offenses, you can pay fines up to $700.
SR-22 certifications serve as proof that you are compliant with Louisiana’s liability minimum requirements. You may be required to file an SR-22 after:
- Falsifying your Driver’s license, Insurance information and Car registration
- A conviction of involuntary or voluntary manslaughter following a car accident
- A hit-and-run accident
- A felony conviction including a traffic law
- Driving without having paid fee for uninsured motor vehicle.
You will have to pay a $60 fee to the OMV If you allow your SR-22 to lapse. The SR-22 certification also requires your driver’s license reinstated if it’s been suspended.
Uninsured Motorist Coverage
In the event of a car accident caused by uninsured driver, your uninsured motorist coverage will help you cover for the injuries to you and your passenger. The same idea will also apply to the driver whose car insurance is underinsured. In Louisiana, you are required to have a car insurance policy that meets the following minimum coverage requirements per accident for underinsured and uninsured coverage:
- The first $15,000 of a bodily injury claim
- The first $25,000 of a property damage claim.
NOTE: If you happen to be a passenger in a driven car by an uninsured driver and get injured, you stand to collect money for damages.
Car Insurance for High-Risk Drivers
Finding car insurance companies for Drivers considered high-risk due to past traffic violations or accidents may be difficult because companies may fear to cover them. They’ll have to take extra steps to comply with Louisiana auto insurance Plan (LAIP). For more information about participating insurers and eligibility, contact the LAIP at e-mail: [email protected]
Car Insurance Fraud
Common forms of car insurance fraud include:
- Falsifying the extent of property damage
- Falsifying injuries
- Staging car accidents.
You can report suspected insurance fraud at (800) 259-5300. If you prefer, you can keep your name confidential.
Car Insurance Rates in LA
The following factors will be considered by various car insurance companies when shopping for car insurance so as to determine your rates:
- Residential area
- Driving record
- Credit history
- History of insurance claims
- Your car’s Make, Model and Year
- Marital status.
Auto Insurance Discounts
The following discounts are offered by most of Louisiana car insurance companies:
- Good student
- Anti-theft device
- Good driver
- Safety device
- Defensive driver course (Available to drivers 55 years old and older).
Most Stolen Cars in Louisiana
Owning a car considered to be high-risk to theft will warrantee you with higher car insurance rates. The following are the most stolen cars in the state of Louisiana in 2013 as provided in www.nicb.org:
- Honda Accord
- Ford Pickup (Full Size)
- Toyota Camry
- Dodge Pickup (Full Size)
- Chevrolet Impala
- Chevrolet Pickup (Full Size)
- Nissan Altima
- Chevrolet Tahoe
- GMC Pickup (Full Size)
- Nissan Maxima.