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What Is the Minimum Car Insurance Requirement in Louisiana?

Nearly every state in the United States requires motorists to have some automobile insurance coverage to drive a car lawfully. And one question that most drivers may have in mind is how much auto insurance you need in Louisiana. According to Louisiana's car insurance laws, all drivers must have at least the following insurance coverages:

  • $15,000 per person for bodily injury
  • $30,000 per accident for bodily injury
  • $25,000 per accident for property damage

These insurance limits can be increased as needed. Assume that the average cost of a car damaged in an accident caused by you exceeds $25,000. In that situation, the minimal property damage limitations will be insufficient, and you will be required to pay additional out-of-pocket charges to compensate the other party. Extending your coverage limits is always recommended to assist you in meeting these unexpected charges.

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What Does This Minimum Coverage Mean?

Liability coverage is required by law in Louisiana. It covers injuries and other losses you have caused to another motorist, their passengers and their property in the event of an accident. Drivers in Louisiana must have a minimum bodily injury and property damage liability coverage of 15/30/25. This implies that your insurance policy must have at least $15,000 in physical injury coverage per person, $30,000 in total coverage for all people involved in the accident and $25,000 in property damage coverage.

The bodily injury coverage limit per person is the maximum your insurance company will pay for a single person injured in a car accident caused by you. The bodily injury coverage per accident, on the other hand, specifies the maximum compensation your insurer will pay for all those injured in an accident in total. And, the property damage limit is the maximum amount your company will compensate for the other person's property damage, such as their car.

Note that a minimum liability coverage plan will not insure you or your vehicle. If you want to protect yourself and your car in the case of an accident. In that case, you must purchase personal injury protection (PIP) coverage to pay for any injuries you may experience in an accident, as well as collision coverage to pay for vehicle damage. The PIP coverage covers you and the other passengers in your vehicle.

How Much Does the Minimum Car Insurance Cost in Louisiana?

Many factors might affect your auto insurance premiums in Louisiana, including your age, ZIP code, driving history, credit score and the make and model of the car you drive. Furthermore, the rates vary across the different car insurance firms in the state.

USAA provides the cheapest vehicle insurance plan in Louisiana for roughly $740 per year in terms of average rates. However, USAA policies are only available to active and retired military personnel and their families. For this reason, Southern Farm Bureau is the least expensive widely available insurer for Louisiana drivers. Its cheapest coverage costs only $32 more than USAA's rate, on average, at $772 per year.

These prices are only estimates based on rates for an average Louisiana driver and should not be used to compare insurance prices.

For this study, MoneyGeek compared rates for Louisiana's minimum liability coverage of 15/30/25 from various insurers for a 40-year-old male resident driving a 2010 Toyota Camry with a clean driving record and good credit score.

If you're instead looking for a policy that balances quality with affordability, MoneyGeek also ranked the top car insurance companies in Louisiana.

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What Is the Minimum Car Insurance Requirement in Louisiana While Leasing a Car?

There are many reasons to opt for a leased car. It’s one smart way to drive a different car every few years. However, you should be aware that the minimum coverage requirements for leased automobiles may differ from what the state needs. Leasing companies require you to return the car in the same condition in which the company gave it. This means you must maintain adequate insurance coverage during the lease duration. Most lessors in Louisiana need full coverage car insurance with a minimum liability limit of 100/300/50 before leasing an automobile.

For information on your leased car's minimum insurance needs, please contact your leasing provider in Louisiana. In addition, if you are new to leasing, before you pick a car or leasing company, you should consider their lease conditions, including Louisiana car lease insurance requirements.

Roughly 11.7% of the drivers in Louisiana are uninsured drivers. To protect yourself against harm to your vehicle if an uninsured driver hits you, MoneyGeek suggests that you buy a full coverage car insurance plan in the state even though the state's uninsured motorist's rate isn't that high. A comprehensive cover insurance policy combines liability, collision insurance and comprehensive coverage. We propose a 50/100/50 liability if you are not sure how much auto insurance you require in Louisiana.

Penalties for Driving Without Car Insurance in Louisiana

Driving an uninsured car or driving without the state-mandated minimum insurance is illegal in Louisiana. Driving without active auto insurance that meets the state's minimum coverage requirements may result in significant fines, suspension of driving privileges, vehicle impoundment and more. The fines and penalties can be severe for those involved in an accident without valid car insurance.

At traffic stops or checkpoints of Louisiana, you may be pulled over by law enforcement authorities and asked to provide proof of insurance. If they find that you’re driving without insurance, you can be given a fine of between $500 and $1,000, along with the suspension of your driving privileges and impoundment of your car. You may also be barred from making insurance claims. Your vehicle will have a Temporary Vehicle Use Authorization sticker, which allows you to drive for three days and submit your insurance papers to the Office of Motor Vehicles within this period.

The penalties for not having car insurance in Louisiana may not be significantly different the second time you’re caught driving without valid insurance. And, from the third time and beyond, your license plates will be immediately removed and your driving privileges will be revoked. Your vehicle may be impounded and you’ll be barred from claiming any type of insurance. The procedure to reinstate your driving privileges can be cumbersome after the second offense.

If you are convicted of any traffic infraction while driving without valid vehicle insurance in Louisiana, you will face the following penalties:

  • Fines between $500 and $1,000; vehicle impoundment; license plates removal; registration suspension; barring from making insurance claims for first-time offenders.
  • Fines between $500 and $1,000, vehicle impoundment; license plates removal; registration suspension; barring from making insurance claims for second-time offenders.
  • Fines between $500 and $1,000; vehicle impoundment; license plates removal; registration suspension; barring from making insurance claims for third and habitual offenders.

The reinstatement of driving privileges won’t be easy after a second offense. Driving without valid insurance in Louisiana may also label you as a high-risk driver. As a result, companies might hesitate to sell you auto insurance. However, with time and research, you can find one meeting your needs.

The following are the reinstatement conditions after being convicted for driving without insurance:

  • First offense: Proof of insurance; $50 reinstatement fee; $10 administration fee; towing and storage fee for impounded vehicles; SR-22 certificate
  • Second offense: Proof of insurance; $150 reinstatement fee, $10 administration fee; towing and storage fee for impounded vehicles; SR-22 certificate
  • Third and subsequent offenses: Proof of insurance; $500 reinstatement fee, $10 administration fee; towing and storage fee for impounded vehicles; SR-22 certificate

Frequently Asked Questions About Car Insurance in Louisiana

In Louisiana, car insurance is required, and all drivers must have the state-mandated minimum liability coverage of 15/30/25. Motorists in Louisiana who drive without car insurance or fail to produce proof of valid insurance may face fines and penalties such as hefty fines, loss of driving privileges, cancellation of vehicle registration, or imprisonment.

Yes. To register a car in Louisiana, you must provide proof of current insurance. You will not be able to register your car unless you can show that you have a car insurance policy that matches the state's insurance requirements. To drive a car in Louisiana, you must also have current and valid car insurance.

A "basic car insurance" policy meets Louisiana's minimum liability coverage requirements. Louisiana drivers are required by law to have at least 15/30/25 liability coverage on their vehicles. If you are caught driving without the required automobile insurance in your state, you may face fines and penalties.

This question's response is dependent on the type of insurance coverage. A liability insurance policy and personal injury protection coverage, for example, follow the holder, even though the former covers damages or injuries to other people or property and the latter covers the policyholder. Comprehensive and collision coverages are for the insured vehicle. The insurance company and the terms of the policy may also have an impact on this. For example, some insurers in Louisiana will not insure drivers who are not listed as the drivers or owners of the car.

You can buy auto insurance in Louisiana even if you don't have a driver's license. You must, however, declare yourself as an excluded driver and list a licensed driver as the primary driver and co-owner of the vehicle. Keep in mind that your driving record will affect your insurance rates. If you don't have a driving record, you'll be labeled as a high-risk driver.

No, Louisiana is not a no-fault state; instead, it has an at-fault system. This means that Louisiana's auto insurance laws permit insurers to assess who was at fault for the accident before compensating. As a result, the legislation in Louisiana does not require drivers to obtain PIP (personal injury protection) coverage. Instead, the losses will be covered by the insurance company of the driver who caused the collision.

You don't need PIP coverage to drive a car in Louisiana because it is not a no-fault state. Personal Injury Protection (PIP) coverage provides for medical expenses and rehabilitation costs for you and your passengers in the event of a car accident, regardless of who is at fault. According to Louisiana's car insurance laws, the driver who caused the accident is liable for the losses. Their insurance provider compensates the injured third parties up to the policy limits.

Louisiana’s car insurance requirements do not require uninsured motorist coverage. Obtaining it, however, is a sensible idea for further protection if your car is involved in an accident with an uninsured driver. Uninsured drivers account for 11.7% of all drivers in the state.

The state of Louisiana allows for a claim of diminished value. In the event of a car accident, you may be able to recover the reduced value of your car as long as you are not the at-fault party. In Louisiana, you may be able to claim a difference in value from the at-fault driver's insurance company. However, you cannot file a claim if the at-fault person is not insured. Claims must be filed within one year of the date of the accident.

After a DUI in Louisiana, your auto insurance rates may highly increase, and your license and driving privileges may be revoked. Because insurers rate differently for drivers with a DUI violation, you can get a cheaper quote if you compare quotes from several insurers. Those who do not have auto insurance must file an SR-22 with their insurance company. It certifies your financial accountability and confirms that you meet the state's minimum insurance requirements.

A CARCO inspection is a free 15-minute photo assessment of your vehicle that precisely captures its current condition. It includes details such as the mileage, physical condition of the car and accessories. The evaluation lowers the cost of property damage coverage. Nonetheless, Louisiana is not one of the states that require CARCO inspection

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About Mark Fitzpatrick

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Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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