Louisiana Car Insurance Laws
Residents who own an automobile in Louisiana with the intention to operate also need to maintain the state mandated automobile coverage in order to be considered financially responsible. If a policyholder is at-fault for an accident, this form of coverage typically pays for bodily injury and/or property damage for which the driver is responsible, up to the limits of the policy. The minimum limits that are required by the state include $15,000 for bodily injury to a single person, $30,000 for bodily injury per accident, and $25,000 for property damage.
If a Pelican State motorist is caught without an automobile policy, or is unable to provide proof of Louisiana auto insurance coverage if stopped by an officer of the law, the offending driver may face a variety fees or other such consequences. Upon being unable to provide proof, the motorist may have their vehicle immediately impounded or have license plates removed and a yellow sticker placed onto the back windshield of the vehicle. The driver then has three days to provide proof of insurance to the state Office of Motor Vehicles or pay fines that can range from $75 to $100 for the first conviction, a fine of $100 to $250 for a second conviction, and fines of up to $700 for subsequent convictions.
Apart from various fines and having one's vehicle impounded, the 13% of Louisiana's motorists that are uninsured may also be unable to collect compensation after an automobile accident. According to LA's "No Pay, No Play" laws, drivers without an adequate amount of coverage are prohibited from collecting the first $25,000 of property damage after an accident, as well as the first $15,000 for personal injuries regardless of who is at-fault. According to these same laws, said drivers may also be unable to files suit or make legal claims for pain and suffering, depending on the situation.
Purchasing a vehicle protection plan, however, can be simple for nearly every resident. To ensure that coverage is available to every vehicle owner, LA created the Louisiana Automobile Insurance Plan (LAIP) that is designed to enable companies to provide coverage for individuals that have been previously unsuccessful in finding a policy on their own. By combining the resources that are available to residents, coupled with the convenience of the Internet for comparative shopping, drivers in the Pelican State are likely to find adequately affordable auto insurance with only a small amount of effort.