Whether you are in Metairie or Monroe, New Orleans or Natchitoches, Louisiana drivers should understand Louisiana auto insurance laws and the requirements to drive legally. Louisiana offers incredible experiences for residents and miles of roads to explore the beautiful state. But to do this, the 3.4 million drivers licensed in Louisiana must purchase appropriate insurance or face hefty penalties.
Auto Insurance Laws in Louisiana
Like other states, Louisiana auto insurance laws are in place for all drivers. Understanding the laws that affect you as a driver saves you from potential nightmares. This includes:
- Drivers are required to show proof of insurance to obtain a driver’s license
- Drivers must be able to show proof of insurance at all times while driving
- Drivers are required to purchase minimum liability coverage, including bodily injury and property damage
Liability insurance in Louisiana
Auto Insurance Laws in Louisiana require drivers to take out minimum liability insurance. You will see these limits called 15/30/25. This includes:
- $ 15,000 for bodily injuries per person
- $ 30,000 for accidental bodily injury
- $ 25,000 coverage for damage to another vehicle or other property
Carrying the minimum does not mean that you are sufficiently insured. For example, the $ 30,000 for accidental bodily injury can leave you a lot short if you are responsible for an accident involving multiple cars. If several people need medical care and attention, the $ 30,000 may not be enough. You would be legally responsible for the difference between your insurance limits and the amount owed.
Coverage for uninsured motorists is not required, but a good idea. Louisiana currently ranks 26th in the country for most uninsured drivers. Although this is not the highest amount, there is a risk that you could be involved in an accident with someone who does not have insurance. If you don’t have this extra coverage, you will have to sue the driver for payments, reimbursement, and loss of income, which takes a lot of time, effort, and money.
Is Louisiana a Flawless State?
Louisiana is a faulty state, which is different in legal terms compared to a no-fault condition. This means that if a driver causes the accident, then he is responsible for paying for the damage and for medical treatment. The insurance limits would be This also means that the driver at fault can be sued for additional payments for damages, injuries, loss of income or other expenses related to accidents.
Penalties for driving without insurance in Louisiana
Drivers face severe penalties for violating Louisiana auto insurance laws. Louisiana law requires all owners of registered cars to purchase auto insurance. If you are caught driving without it, a driver is liable to fines of $ 500 to $ 1,000.
There are additional penalties for missing proof of insurance or if you let your insurance expire. If you can’t prove you have liability insurance, your driving privileges could be suspended and your vehicle impounded. Your registration and number plates could be revoked or canceled.
If you are involved in an accident without liability insurance, your driver’s license could be suspended and your registration revoked for up to 180 days. Mistakenly claiming you have insurance has similar serious consequences.
Finally, Louisiana is considered a “No Pay, No Play” state. This means that if you do not have insurance, you have limits on collecting certain amounts of payments after a car accident, even when it is the fault of the other driver. Without insurance, your limits are capped at:
- The first $ 25,000 in property damage
- The first $ 15,000 in bodily injury
Additional Auto Insurance Coverage Options in Louisiana
Louisiana drivers pass a average of $ 2,711 per year for full coverage – the highest average in the country, but drivers don’t have to sacrifice proper coverage. There are many options to customize your policy and provide adequate protection. Louisiana drivers can add:
- Collision: Collision insurance covers your car if you have damage from a covered accident. This also includes damage caused by striking a stationary object. The average cost of collision insurance in Louisiana costs $ 468.87, according to III.
- Full: This is the insurance that covers damage to your car caused by circumstances other than an accident. Common examples include theft, fire, vandalism, flooding, and other water damage. In Louisiana, the average cost of full coverage is $ 231.76 per year, according to III.
- Uninsured / underinsured motorist: This provides additional financial protection if you are involved in another accident and the driver at fault does not have or does not have adequate insurance. It pays for the necessary medical bills, lost income, and other accident-related expenses that you need to recover.
- Refund of the rental car: For added convenience, this inexpensive option reimburses you if your car is in the repair shop due to an accident. Many carriers work directly with a rental car company for direct billing when you have this option.
- Gap Coverage: If you total your new car in an accident, you probably owe more on the loan or lease than what your car would be valued at by the insurance company. This insurance covers the difference so you don’t have to pay out of pocket. Many lenders require this insurance for new cars or rentals.
- Roadside assistance: Roadside assistance is another way to make your life easier in case your car becomes unusable. This assistance provides assistance if you need towing, unlocking, fuel delivery, and assistance with other road annoyances.
Frequently Asked Questions
What is the best auto insurance company in Louisiana?
There are many factors that are used in determining the best auto insurance company in Louisiana, and many of them are unique to you. Look at the company’s financial stability, customer service ratings, pricing, and discounts to get started. Bankrate compared several carriers in Louisiana, and found USAA and Geico maintain excellent grades and competitive rates for drivers in Louisiana.
What is the cheapest auto insurance in Louisiana?
Inexpensive auto insurance is possible, even with above-average auto insurance rates in Louisiana. Bankrate looked at several carriers for rate options and found Geico to be the least expense. Geico costs around $ 448 per year for minimum coverage and $ 2,162 – both prices are well below the average rate.
How To Save Money On Auto Insurance In Louisiana?
Comparative shopping is a valuable way to save so much money as possible. By looking at multiple carriers, you see which one offers the best coverage for you at the best price. Asking to review all discounts is another great tactic for saving money, as there are some discounts that you might not know are available. You can take a higher deductible, which reduces your premiums. Finally, keep your credit score strong and you will benefit from the most favorable rates.