Auto insurance is a must-have for all drivers in Louisiana—not only because it can protect your financial security but also because you could face severe penalties if you are caught driving without it. In fact, a unique law in Louisiana makes driving without insurance particularly risky. Known as the “No Pay, No Play” law, if you are involved in a collision but you are not insured, you will have to cover your first $15,000 in bodily injury damages and $25,000 in property damages even if another driver caused the accident.
If you’re uninsured and involved in an accident in Louisiana, you’ll have to cover at least a portion your losses out of pocket no matter who was at fault.
The first time you are caught driving without car insurance in Louisiana, you will face a fine of up to $100. Also, your plates could be confiscated and your registration may be suspended. Your car may also be impounded. You will have to pay $60 in reinstatement fees, and you will have to pay storage fees if your car was impounded.
The maximum fine jumps to $250 for a second offense, and the reinstatement fees increase to $160. For a subsequent offense, the maximum fine and reinstatement fees increase to $700 and $510, respectively.
And here’s where driving without insurance gets really expensive: If you cause an accident that results in injuries, death, or property damage, you will have to cover those losses out of your own pocket.
What Are The Minimum Auto Insurance Requirements In Louisiana?
Carrying liability insurance is mandatory for all drivers in Louisiana. The minimum coverage limits are $15,000 for injuries to one person, $30,000 for injuries in one accident, and $25,000 for property damage. However, the damages in car accidents often exceed these minimum limits, so it’s a good idea to purchase extra coverage.
To help you find the perfect policy without breaking the bank, our Geeks compared insurance rates from several providers in Louisiana for a policy that includes 50/100/25 in liability coverage (slightly higher than the state’s minimum limits) and the same limits in uninsured/underinsured motorist coverage. You can review the results of our study here.
What Factors Affect The Cost Of Auto Insurance?
To calculate your auto insurance premium, car insurance companies use algorithms that formulate a risk profile, which serves as an indicator of how likely you are to file a claim. These algorithms take a variety of factors into account.
Although each car insurance carrier has a different formula for calculating premiums, most of them incorporate the following factors:
- Your age;
- How long you’ve been driving;
- Your driving record and claims history;
- The number of miles you drive each year;
- The year, make, model, and claim rate of the vehicle you insure;
- Your credit history; and
- Where you live.
Now that you know the factors that affect your premiums, you can take steps to get your car insurance rates reduced. Effective strategies include:
- Avoiding accidents and traffic citations for several consecutive years;
- Buying a vehicle with a low rate of claims;
- Buying a vehicle with modern safety features and low horsepower; and
- Maintaining good credit.
Were there any important points that we missed? Feel free to share your insights in the Comments section below.