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Louisiana Car Insurance Liability Requirements, Types and Penalties

Louisiana car insurance regulations only require that drivers carry minimal levels of liability insurance. No other insurance is required, though many other types are available. Liability insurance is insurance that pays for damages to another person's health or property if the accident is your fault. In Louisiana, liability insurance automatically covers you and any member of your family legally driving your car. It also covers anyone else legally driving your car and covers you and members of your family legally driving anyone else's car.

Minimum required liability Louisiana car insurance coverage is listed as 10/20/10. That means $10,000 bodily injury for one person for a single accident, $20,000 total bodily injury for a single accident and $10,000 property damage coverage for a single accident. You can, and probably should, carry more than the legally required insurance, as you can be sued for any amount of damage in any accident you cause that you don't have enough insurance to pay for.

Louisiana car insurance types:
Louisiana also offers medical payment coverage, uninsured and underinsured motorist's coverage, towing and labor, comprehensive, collision, and rental reimbursement coverages.

There are two special case coverages in Louisiana. The first is the Louisiana Automobile Insurance Plan. This is Louisiana's version of high-risk insurance; it's coverage for drivers who poor records won't allow them to buy insurance through normal channels.

The second special case is some variations on uninsured and underinsured motorists insurance. Normally, this type of insurance covers you if you are in an accident that is another driver's fault and the other driver doesn't have insurance, or doesn't have enough insurance.

The special cases are labeled Economic Only Coverage and Property Damage Coverage. Economic Only specifically limits injury payments to the actual cost of medical treatment, with no allowance for pain and suffering. Similarly, Property Damage Coverage gives you a deductible and pays only for damage to your vehicle.

Driving without insurance in Louisiana is a really bad idea. The law requires that you carry proof of liability insurance in the car with you at all times. If you are stopped by law enforcement and don't have it, your car can be impounded right then. If the officer does not impound your car on the spot, he can still remove your license plates and put a yellow sticker on your back windshield. This gives you three days to get insurance. If you don't, any officer stopping you will have your car towed.

However, that's not all. You can be fined up to $100 for the first offense and up to $700 for repeated offenses. Plus, Louisiana has a law they call "no pay, no play." If you are in an accident that is not your fault, but you don't have the legally required insurance coverage, you will not be allowed to collect the first $10,000 dollars in property damage or the first $10,000 in medical damages (or both, if that applies). The moral when it comes to Louisiana car insurance is don't leave home without it.

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