What auto insurance coverage is required in Louisiana?
(per Louisiana Department of Insurance as of 6/12/2017)
Louisiana law only requires drivers to carry minimum liability coverage on any automobile
they own or risk facing costly penalties such as fines and car impoundment. This coverage pays for property damages or personal injury for which you may be legally responsible, up to the limit of your
In Louisiana, each vehicle is required to have 15/30/25 liability limits.
Those limits provide payments of $15,000 for bodily injury to one person,
$30,000 for bodily injury to more than one person in a single accident,
and $25,000 coverage for damage to someone else's vehicle or other property.
What is auto liability insurance?
Auto liability insurance covers bodily
injury or property damage caused by you, your family members, and others driving your vehicle with your permission. You and your family members are also covered when driving another person's automobile
including rental private passenger vehicles. Company cars and other non-owned cars regularly available to you are not covered by your auto liability insurance policy.
What are the penalties if I don't have proper coverage in Louisiana?
Louisiana law requires that all registered owners of an automobile carry liability insurance. You may be subject to fines of $500 to $1,000 for knowingly operating a vehicle without insurance,
being involved in an accident without insurance coverage and committing fraud by falsely claiming to have auto insurance coverage. There are also penalties for lack of proof of insurance or for
letting your insurance lapse.
Drivers without liability insurance may also have their driving privileges suspended by having their vehicle impounded, their registrations revoked or their
license plates cancelled. If you are involved in an accident without liability insurance you may have your driver's license suspended and registrations revoked for 180 days. Also, if you are caught
falsely claiming to have insurance you may have your license revoked for 12 to 18 months.
What other auto insurance coverages are available?
Medical payments coverage
Medical payments coverage pays for medical expenses for a designated period of time following the accident, including funeral expenses, up to the limits of your policy. Payments are made regardless
of who is to blame for the accident. Medical payments covers you, your family members and other passengers in your car.
Uninsured/Underinsured motorist coverage
Uninsured/Underinsured motorist coverage pays benefits to you if your car is hit by a driver
who has no insurance or too little insurance to pay for the full amount of your injuries or property damage. Any bodily injury you or an occupant of your vehicle suffers due to an accident caused by another
driver is covered under this policy. Hit-and-run drivers may be classified as uninsured motorists, but it helps if there is a disinterested witness to the accident.
Uninsured/Underinsured Motorist economic-only coverage
This is the same as uninsured motorist coverage except that it covers only the
actual costs of injuries to you and the occupants of your vehicle. Pain and suffering are not included under this coverage.
Uninsured/Underinsured motorist property damage coverage
This coverage provides for repairs to your vehicle if you are in an
accident with an uninsured driver. A $250 deductible applies under this coverage, and with liability coverage, your recovery is limited to $25,000 or the actual cash value of the vehicle, whichever is less.
You can purchase a higher recovery limit if you choose. If your policy includes collision insurance, this coverage is not available.
Towing and labor coverage
Towing and labor coverage pays for towing costs and labor costs when your car is disabled. Most
automobile policies limit this coverage to $25 per tow, and some companies will not write towing and labor coverage for older cars.
Comprehensive auto insurance coverage pays for specified damages to your automobile, such as those resulting
from falling objects, flood, fire, explosion, vandalism, theft or additional named causes other than collision, subject to any exclusions or limitations specified by your policy.
NOTE: Street flooding
from heavy rainfall has been a major cause of damage to vehicles in the New Orleans area in the past including the low lying areas of Jefferson Parish such as Metairie and Kenner.
Collision coverage pays for damage to your car that results from an accident. You can collect under your own
collision coverage, whether or not you were at fault. Collision coverage is always sold with a deductible.
NOTE: Although many people tend to drop collision and comprehensive coverage on older cars,
lenders usually require you to carry comprehensive and collision insurance until the vehicle is paid for no matter the vehicle's age or value.
Transportation Network Company coverage
If you drive for a Transportation Network Company (TNC) like
Uber, you may want your own insurance coverage on top of what the TNC may offer. Driving for hire for a transportation network company such as Uber can be a great way to make extra money, especially in
densely populated area such as New Orleans and Metairie. However, be sure to talk to an Alliance Insurance agent before you sign on as a TNC driver!
NOTE: Most personal auto policies exclude coverage while you are carrying a passenger for hire.