Car insurance coverage can be expensive depending on your driving record, your age, the vehicle you own, and other factors. However, liability insurance coverage is mandatory in all states including Louisiana. Failing to carry the required liability insurance coverage can result in penalties including fines and license suspension. In Louisiana, failing to carry liability insurance can also prevent you from receiving compensation in a car accident caused by another driver.
Mandatory Liability Insurance Coverage
Louisiana requires all drivers to carry a minimum amount of liability insurance to protect others in the case of an accident. Liability insurance pays for personal injury and property damage if you are at fault for a motor vehicle accident. It also protects your passengers if you cause an accident.
In order to satisfy the legal insurance requirements, you must carry a minimum of:
- $15,000 personal injury coverage to one person in an accident
- $30,000 personal injury coverage for more than one person in an accident
- $25,000 property damage coverage
You may choose to purchase higher amounts of liability insurance coverage; however, you must purchase the minimum insurance coverage or face severe penalties.
Penalties for No Insurance Coverage
If you are in a motor vehicle accident and you do not have the required liability insurance coverage, law enforcement can impose a fine of up to $1,000 for operating a vehicle without insurance and your driver’s license may be revoked for 180 days. You can also be fined for lack of proof of insurance coverage or for allowing your insurance coverage to lapse even though you are not involved in an automobile accident.
The most severe punishment for failing to have liability insurance is the “No Pay, No Play” law. Under this law, you will be penalized for failing to have liability insurance if you are in a motor vehicle accident caused by another driver. In other words, if you are injured in a car accident caused by another driver you will not be allowed to collect the first $25,000 in property damages and the first $15,000 in personal injury damages if you do not have the minimum liability insurance coverage required by Louisiana law. The penalty is designed to provide more encouragement for drivers to always carry the required liability insurance coverage.
Other Insurance Available for Drivers
In addition to liability insurance, you may choose to purchase other types of insurance coverage. You should discuss the various types of insurance with your insurance agent to determine what you need in order to protect yourself and your family in the event of a car accident.
Examples of other types of car insurance you may want to consider include:
- Medical Payments Coverage – Pays for medical expenses up to the policy limits regardless of who is to blame for the car crash.
- Uninsured Motorist Coverage – Pays for your damages in the event you are in an accident caused by a driver who does not have insurance coverage.
- Underinsured Motorist Coverage – Pays for your damages in the event you are in a car accident and the other driver’s insurance does not cover all of your expenses.
- Comprehensive Coverage – Pays for damage to your vehicle from things such as theft, explosion, fire, falling objects, and vandalism. It does not cover damage to your vehicle from a collision.
- Collision Coverage – Pays for damage to your vehicle from a collision regardless of whether you were at fault for the accident. Most lenders will require you to carry comprehensive and collision coverage as long as you owe money on your vehicle.
Have You Been Injured In A Car Accident?
The NoLA car accident attorneys of The Olinde Firm can help you recover compensation from the other driver if you have been injured in a Louisiana motor vehicle accident. We offer a free consultation and we do not charge attorney fees until you receive money for your claim.
Contact our office at (504) 587-1440 or 1-800-587-1889 to schedule you free consultation with an experienced New Orleans car accident attorney. Do not wait – you only have a limited time to file a claim against the other driver for damages!