Louisiana Auto Insurane Law
Reader’s Question:
What will happen if you get involved in a car accident and you do not have car insurance in the state of Louisiana?
Denver
Monroe, LA
If you do not have car insurance on your motor vehicle at the time of the accident, the “No Pay, No Play” law would then apply in Louisiana. That is, a person who does not have car liability insurance, no matter who is at fault, cannot collect for the first $10,000 of damages in an accident.
If you were at fault in the accident then I am sorry to tell you but of course you would have no insurance to make a claim through therefore you will likely be held personally responsible for the damages that you caused to the other party.
In Louisiana, the penalties for driving uninsured if you are cited by Louisiana law enforcement is that the vehicle can be impounded, you may be hit with fines and administrative fees, registration and license plates (tags) can be suspended or revoked as well.
Louisiana Auto Insurance Minimum
Reader’s Question:
What automotive liability insurance coverage does Louisiana impose?
Andrew
Shreveport, LA
Having an automotive insurance policy entails many benefits, especially if your policy covers the minimum required by the state of Louisiana. Being a driver, you are expected to be responsible for your own safety and for the safety of those people around you (your passengers, fellow drivers and pedestrians). With liability automotive insurance, you get an assurance that damages to these people and to yourself are financially covered. This is a good way of protecting your assets because in effect, you are passing the financial responsibility to the automotive insurance company by letting them take care of the expenses brought about by the accident.
If you have a collision and comprehensive coverage, your automotive insurance will protect your vehicle from expenses brought by accidents, vandalism, or theft. This also serves as a financial responsibility guarantee to the institution where you borrowed money from to buy your vehicle. This coverage is most beneficial to those whose vehicles have high market values.
The Louisiana state law suggests that if you want to drive a motor vehicle, you should be able to present proof that you have the resources to cover any damages that you may cause to others. This proof of financial responsibility must cover 10 thousand dollars for the bodily injury claim of one person, 20 thousand dollars for the bodily injury claims of two or more persons (for one accident only), and 10 thousand dollars for the vehicle or property damage claims of the other party. This is referred to as the 10/20/10 minimum automotive liability coverage of Louisiana.