Auto Insurance Policy Cancellation Louisiana LA
Reader’s Question:
My friend just got in a car wreck here in Louisiana a few days ago, and when the police asked for her car insurance, they found out that it has been cancelled by the auto insurance company. She was unaware of the cancellation, and now she might be given more citations because of it. What will happen to her?
Crissy
New Orleans, LA
In Louisiana, there is a law called “No Pay, No Play” which is implemented when a person who does not have liability insurance gets involved in a car accident. The “No Pay, No Play” law is stated in the 1998 LA Revised Statute 32:866. According to this statute, the party who does not have liability insurance will not be allowed to collect for the first ten thousand dollars of the damages (for bodily injury or property damage claim), regardless of whose fault it was. Therefore, if you were found at fault, you would have to be personally responsible for the damages that you caused to the other party. Likewise, you would have to be personally accountable for your own damages since there is no automotive insurance policy that you could claim from.
Under ordinary circumstances, an automotive insurance policy in Louisiana can only be cancelled if you miss your premium payment date, if you file a counterfeit or fake claim, or if your driver’s license or car registration is suspended. If your automotive insurance company decides to cancel your policy, you should expect a twenty-day notice from them. If you request an explanation for the non-renewal, the automotive insurance company must also be able to provide you with the details in writing.
There should be no way for you not to find out that your automotive insurance policy is cancelled. However, in case you didn’t get any notification from the automotive insurance company, you could contact the Louisiana Department of Insurance to get some advice regarding this matter.
Tags: auto insurance policy, auto insurance premium, car insurance law, liability insurance