Louisiana maintains relatively inexpensive insurance requirements. It requires a 10/20/10 liability policy, which translates into the following minimum amounts:

• $10,000 for one person injured in an accident
• $20,000 for all injuries caused by an accident
• $10,000 for all property damaged in an accident

Bodily Insurance Liability

Bodily Insurance Liability (BIL) covers injuries sustained by those in the party who was not at fault in an accident. That means you, the guilty party, pay for the other party’s medical expenses, at-home costs, lost wages, and funeral expenses via this coverage. Often, the $10,000/$20,000 limits are insufficient to cover all costs, so it is recommended you go well beyond these limits.

Property Damage Liability

Property Damage Liability (PDL) covers the repair or replacement of the other party’s vehicle, if they were not at fault in an accident. Depending on the accident, it may cover damage done to their home property and damage done to property not belonging to them. Again, you should purchase at least twice the amount of $10,000 to keep your personal finances untouched.

Other Recommended Types of Coverage

Louisiana does not require coverage that would protect you and your loved ones from high accident-related costs. It is up to you to investigate the various types of personal coverage. Of these types, you should first purchase Personal Injury Protection (PIP) to protect the health of you and your passengers in the event of an accident. PIP covers the same aspects as BIL, from medical expenses to funeral costs. You should purchase the highest amount within your financial means to give yourself as much cushioning as possible.

For your car’s protection, you should purchase Collision Insurance and Comprehensive Insurance. These types reimburse the costs of repairing or replacing your car when it has been damaged in an accident, or in a fire or hailstorm. As with PIP, you should choose the highest deductible for these types of coverage that are within your comfort level.

You should also consider Uninsured Motorist/Underinsured Motorist Coverage (UM/UMC). This coverage reimburses you if you or your passengers are injured by an uninsured driver. It also covers damages the uninsured driver incurs on your car and personal property. Such drivers are unfortunately as common as insured drivers. For that reason, it is ill-advised to risk forgoing this insurance, as paying for your own medical expenses and car repairs could lay waste to your personal finances.

Louisiana’s Penalties for Uninsured Drivers

Louisiana issues stiff penalties for those who drive without proof of insurance. If you are pulled over by a Louisiana law-enforcement officer and fail to show proof of insurance, you will face immediate impoundment of your vehicle. An alternative outcome is that the officer will remove your tags and attach a yellow sticker to your back windshields that shows other officers you lack proof of insurance. You are then given three days to present proof of insurance to the Office of Motor Vehicles, which will permit you to reclaim your vehicle and tags.

However, if you are again caught without insurance after the three-day limit, you will face another impoundment of your vehicle until you can provide proof of insurance. You will also face reinstatement fees and towing costs.

Furthermore, for each time you are found without insurance, you will face $75-$100 the first time, $100-$250 the second time, and up to $700 each time afterward.

Louisiana’s “No Pay, No Play” Law

Louisiana has a law known as “No Pay, No Play,” which forbids uninsured motorists from collecting the first $10,000 in personal injuries and the first $10,000 in property damages in an accident. This law holds true even if the uninsured person was not at fault for the accident.

Compare & Save on Insurance by Visiting Our Comparison Form. Enter Your Zip Code, Select Insurance Type, then Click Go. One Form, Takes Only ~ 3 Min, Quotes from Top Providers!