What kind of car insurance is required in New Orleans, Louisiana?

Louisiana requires all of its drivers to have a car insurance policy to maintain financial responsibility when operating a vehicle. Their insurance laws aren’t very different from other states but do have some unique nuances that you should be aware, specifically their penalties for driving without insurance. Auto insurance is an absolute necessity, otherwise, you could lose your vehicle and drivers license. This is why driving schools stress to students the importance of being insured before driving. Visit this site for more info on programs for new drivers. 

Louisiana follows a tort system. This means that a driver must always be found at fault for causing an accident and is then required to pay for incurred damages. The specifics can vary from each state.

 Required Coverage

All personal vehicles in Louisiana require the following liability coverage requirements:

• Bodily Injury
• Property Damage

Minimum Louisiana Car Insurance Requirements
Bodily Injury Liability		$15,000 / $30,000 Limit
Property Damage Liability		$25,000 Limit

Additional insurance coverage can include:

• Comprehensive and Collision Coverage
• Uninsured / Underinsured Motorist Bodily Injury Coverage

Collision insurance pays for the expenses to repair or replace your vehicle after it’s been involved in an accident. Comprehensive covers you if your vehicle has had non-collision damage from incidents such as a flood or fire. It also covers you if your vehicle has been stolen and if it’s listed as one of the most stolen vehicles in Louisiana, you’d be wise to invest in this coverage. But it’s best to just always drive safely and attentively to avoid your costs increasing dramatically. This especially an issue with new drivers with rates already being higher than for all other drivers. Learn more about driver safety for new drivers at One Direction Driving. 

Underinsured or uninsured insurance will help pay for expenses in the event that the at fault party doesn’t have enough coverage to pay for all the damages or if they don’t have any insurance whatsoever. Louisiana requires its drivers to maintain car insurance but the limits aren’t always high enough to cover the expenses making this worthwhile insurance to add to your policy.

Proof of Insurance and Financial Responsibility

Establishing proof of insurance and financial responsibility

• Get a standard liability car insurance policy

Required Documentation

In order to provide proof of insurance, you can provide one of the following:

• Copy of your insurance ID card
• Copy of your insurance policy or binder
• Copy of your declaration page
• A written statement on company letterhead from your insurer signed by an agent and including all pertinent policy information

You must maintain proof of insurance and financial responsibility:

• When asked by a police officer
• After an accident
• Anytime you drive your vehicle

Failure to Maintain Financial Responsibility Penalties

If you are not able to show proof of insurance, you can face the following penalties:

• Loss of your license plates, impoundment of your vehicle and loss of registration (This can happen immediately if you are caught driving without insurance)
• If you can’t show proof of insurance after being flagged for no insurance, your license and registration can be suspended by the Office of Motor Vehicles and you face the following reinstatement fees depending on how many days have passed since the suspension:
  • 11 – 30 days: $50
  • 31 – 90 days: $125
  • 91+ days: $225

Source – www.usinsuranceagents.com

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