Louisiana Auto Insurance Overview Q & A

August 28, 2015

 

1) What mandatory auto insurance laws exist in the state of Louisiana?

  • In the state of Louisiana, most vehicles must carry liability insurance. The only vehicles that do not have to carry liability insurance are parade vehicles, vehicles owned by the state of Louisiana, and buses owned by the individual Louisiana cities.

  • Louisiana requires that motorist’s vehicles carry minimum liability insurance of $15,000 per person in an accident, $30,000 per accident for bodily injury or death, and $25,000 for property damage.

  • All motor vehicles operating on Louisiana roadways must show proof of insurance upon request. This means that you must carry your insurance card of binder, I.D. card issued by your insurance company, your declaration page or a written statement from the insurance company at all times.

2) What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

 $15,000 per person in an accident,
 $30,000 per accident for bodily injury or death,
             and 
 $25,000 for property damage

 

Not alot if you are seriously injured by someone without assets!

What are the Rental Car Insurance Requirements?

 

       In the state of Louisiana it is illegal to operate any motor vehicle without insurance, this includes rental cars. Rental cars must carry the minimum liability coverages required by Louisiana law. It is important to keep in mind that most Louisiana auto insurance policies include car rentals. Most credit cards cover car rentals as well, so be sure to check your auto insurance policy and/or check with your credit card issuer. If you find that your credit card and/or auto insurance policy do not cover rental cars, you must purchase car rental insurance from the car rental company. It typically costs an extra $7-$14 a day.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

 

      In the state of Louisiana, Uninsured/Underinsured Motorist Coverage is considered optional coverage, so law does not require it. In the state of Louisiana Uninsured/Underinsured motorist coverage pays benefits to the policyholder if their vehicle is hit by a driver who has no insurance or too little insurance to pay for the full amount of the policyholder’s injuries. Any bodily injury the policyholder or any occupant of your vehicle suffers due to an accident caused by another driver is covered under the Uninsured/Underinsured motorist coverage policy.

 

Advice: GET IT, Because so many liable drivers have a minimal policy. 

What are the rules pertaining to the exclusion from coverage of a driver living in household?

 

      In the state of Louisiana, auto insurance companies are permitted to write policies excluding drivers in the household from coverage. This is called “Excluded Driver/Household Exclusion.” It is extremely important that you review your policy carefully and make absolutely sure that all members in your household are included on your policy if they will be driving your vehicle.  

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

 

     If your insurance lapses or is canceled, your license will be flagged automatically. You will not be allowed to renew your registration or your driver’s license until the flag has been removed. To remove the flag, you must present proof of insurance that was effective within 10 days of the insurance cancellation date. If your insurance lapsed or cancelled because the vehicle was sold, junked, traded or you moved out-of-state, you must provide proof of these circumstances. There are a number of penalties associated with lapsed or canceled insurance. After 10 days, if you have  not provided proof of insurance, you will be charged $50. After 30 days, you will be charged $125, and after 90 days, you will be charged $225. 

Is the state a No Fault or Tort state? What does either mean to the policy owner?

 

       The state of Louisiana follows a Tort system. This means that someone must be found to be at fault for causing the accident. The at fault person and their insurance company are responsible for all  damages. 

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