Louisiana Car Insurance

louisiana

While regulated by the Louisiana Department of Insurance, most of the car insurance laws in the state of Louisiana are regulated by the DMV. Oddly enough, Louisiana drivers pay almost twice as much in insurance premiums as any other state. CarInsuranceReview.com will explain why and show you what you can do to find affordable rates.

Louisiana Courts and Car Insurance

One of the unique aspects of the Louisiana car insurance system is the fact that the state allows jury trials for car insurance claims totaling more than $50,000 in damages. Because car insurance carriers worry about the risk and added cost of going to court they will often settle most claims for just under $50,000, whether they feel the claim was worth that amount or not. They do this because the cost of going to court coupled with an automatic bias against insurance companies would in most cases result in higher losses.

Unfortunately, they must take these settlements into consideration when calculating the average cost of insurance in each area. Some insurance research agencies show the average cost of insurance in Louisiana in 2010 was approximately $2,500 per year.

Minimum Car Insurance Requirements in Louisiana

All drivers in Louisiana must show financial responsibility by purchasing a car insurance policy. There are no other options. Your insurance policy must include bodily injury liability coverage in the amount of $15,000 per person and $30,000 per accident as well as property damage liability in the amount of $25,000 per accident.

These limits will pay for damages you cause to another party if you are found at fault. While they are the minimums set forth by the state of Louisiana, they are incredibly low and should be increased if you can afford to do so.

Driving without Insurance in Louisiana

Louisiana state law requires insurance companies to electronically report your coverage information to the Office of Motor Vehicles. They are automatically notified if you make changes to your policy limits, purchase a new policy, or cancel your coverage.

Getting caught without insurance in Louisiana comes with serious penalties. The officer who pulls you over for a violation, or who arrives on scene at your accident, has the option of giving you a moving violation, taking possession of your license plates, or sending your vehicle to the impound yard. If this happens you will have only 3 days to prove you have insurance without having to reregister your vehicle.

Letting your car insurance cancel will automatically flag your driver’s license. If this happens you will have 10 days to show the DMV that you have insurance or to prove the vehicle was sold or junked. The fines for reinstating your registration vary depending on the length of time you go without proving coverage.

Let CarInsuranceReviews.com Help

CarInsuranceReviews.com knows how difficult it can be to hunt for insurance in a state where prices are high and competition is steep. We can help you by putting you in touch with some of the most reputable carriers in your area so that you can easily compare quotes and determine which options are best for you.

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