Louisiana Minimum Car Insurance Requirements
In the state of Louisiana, every driver must carry a certain amount of liability insurance coverage. The mandatory minimum liability coverage for drivers in Louisiana is as follows:
- $15,000 bodily injury per person
- $30,000 bodily injury per accident
- $25,000 property damage per accident
In Louisiana, you must carry proof of insurance at all times when you are driving. Be ready to present it if you are asked by law enforcement. Furthermore, if you have an auto loan or lease your vehicle, your lender or leasing company may require you to carry additional insurance.
Louisiana Liability Insurance
Like is the case with many other states, liability insurance is required for all drivers in the state of Louisiana. Liability coverage pays for bodily injuries and property damage you cause to another driver in an accident you are found to be at fault for. Liability insurance will never pay for damages or injuries you have. You would need to expand your policy coverage for that. The amount of liability insurance you must carry is known as the limit. Liability coverage limits and the different aspects of an accident it covers will be explored in a later section.
Diminished Value Policy in Louisiana
Louisiana is one of 15 states that is a diminished value state, meaning that drivers can attempt to recover diminished value from the at-fault driver’s insurance company if they experience any losses when selling their vehicle. Even if your car has been fully repaired, the fact it was in an accident automatically brings down its value no matter the condition it is currently in. If you experience this loss when going to sell your car, you could make a diminished value claim with the other party’s insurance company.
In the state of Louisiana, there are some requirements you must meet in order to make a claim of this nature:
- You were not responsible for the accident
- You can provide the request accident-related documentation, indulging photos and records of repairs
- It has been under a year since the accident occurred
- Louisiana does have uninsured motorist coverage for such claims
Car Insurance Limits in Louisiana
As previously mentioned, with insurance policies comes coverage limits. Coverage limits are the minimum amount of insurance the state requires you to carry as a driver. For the state of Louisiana, these policy limits are expressed as 15/30/25. From an insurance company’s perspective, limits refer to the maximum amount they will pay out after a claim.
Liability insurance encapsulates three categories, and each correlates to a different number in the split limit. More on those categories and what they cover are explained below.
- Bodily injury per person refers to the maximum amount of money your insurer will pay for one person’s injuries in an accident that you caused.
- Bodily injury per accident is the amount your insurance company will pay for all injuries you caused in an accident.
- Property damage per accident is how much your insurer will payout for damage you cause in an accident.
Is Louisiana’s Mandatory Insurance Minimums Enough Coverage?
In short, no. Louisiana does not have an adequate enough required liability insurance minimum in order for you to carry it alone. This is evident just by looking at the property damage limits. $25,000 would barely begin to make a dent in the price for a new vehicle should the other driver need one. Medical expenses can also easily go well beyond the limit of $30,000. It is highly recommended that you purchase coverage limits well beyond what is required. You should also consider policy add-ons in order to fully protect yourself and your assets. Remember, anything that is not covered by your insurance, you will be responsible for.
Driving Without Proof of Insurance in Louisiana
Choosing to drive without liability insurance in the state of Louisiana can result in you facing some pretty harsh penalties. Outlined below are the consequences imposed on drivers who decide to drive without insurance in Louisiana.
- Fines anywhere from $500 to $1,000
- Suspension of driving privileges
- Various reinstatement fees
- Vehicle impoundment
- Barred from making losses claims to insurance
Additional Types of Car Insurance in Louisiana
While the state of Louisiana only requires drivers to carry liability insurance, there are numerous policy add-ons you should consider when going to purchase coverage. Listed below are some common types of car insurance you can add to your policy to strengthen coverage.
- Collision: This covers damages your car sustains in an accident with another car.
- Comprehensive: Comprehensive coverage protects your car against a variety of damages it may encounter when it is not in use. Some perils included in this policy are theft and extreme weather.
- Personal Injury Protection (PIP): PIP coverage pays for you and your passenger(s) medical expenses no matter who was at fault for the accident.
- Gap Coverage: If your car is totaled before you can pay off your auto loan, gap coverage will cover the difference between your vehicle’s actual cash value and the remaining amount on your loan.
- Roadside Assistance: If you end up stranded on the highway, roadside assistance can lend a helping hand. The full scale of coverage depends on what company you have a policy under, but, in general, it will help with mechanical problems like a dead car battery.
- Rental Car Reimbursement: If your car is out of commission for a while following an accident, rental car reimbursement will cover the costs to rent a vehicle while you wait for yours to be fixed.
- Uninsured Motorist Coverage: If you end up in an accident with a driver lacking insurance, uninsured motorist coverage will pay for damages to your property and any injuries you have.
Car Insurance is Important For Any Louisiana Driver
Just because you meet the insurance laws in Louisiana does not always mean you are fully protected in an accident. While state-mandated liability insurance minimums are a great place to start, they cannot offer you full coverage. It would be wise to both increase coverage limits and consider insurance policy add-ons. You will want to find a plan that fully protects yourself and your assets. If you do not, you could be stuck with a stack of bills. Don’t put your finances at risk and drive uninsured.
*This product may not be available in every state, please call an agent for more information.