Switching Auto Insurance In Louisiana: A Step-By-Step Guide

If you're looking to change your auto insurance in Louisiana, there are a few things you should keep in mind. Firstly, it is illegal to drive without insurance in the state, and you must have a minimum level of liability coverage. This includes $15,000 in bodily injury per person, $30,000 in total bodily injury per accident, and $25,000 in property damage per accident. You will need to provide proof of insurance when registering your vehicle, and you must register your vehicle within 30 days of moving to the state. Additionally, Louisiana is not a no-fault state, so the person at fault for an accident is responsible for compensating others for any harm.

Minimum liability coverage

In Louisiana, vehicle owners are required to maintain certain minimum amounts of liability insurance in case they cause an accident. The state's minimum liability car insurance coverage requirements are as follows:

• $15,000 for bodily injury or death per person in an accident caused by the driver of the insured vehicle.
• $30,000 for total bodily injury or death liability per accident caused by the driver of the insured vehicle.
• $25,000 for property damage per accident caused by the driver of the insured vehicle.

This basic coverage pays the medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians injured or whose vehicles are damaged in a car accident you cause, up to the coverage limits. It is important to note that liability coverage does not include protection for you, your passengers, or your own vehicle.

While not required, you may want to consider carrying more coverage to protect yourself in case of a serious crash that results in significant injuries and vehicle damage. Once policy limits are exhausted, you will be personally financially responsible.

Louisiana is an "at-fault" state, meaning the person who was at fault for causing the car accident is also responsible for compensating others for any harm resulting from the crash. The at-fault driver's insurance carrier will absorb these losses, up to the policy limits.

Proof of insurance

In Louisiana, you must have valid liability insurance to register your car or renew your registration. The Louisiana Office of Motor Vehicles (OMV) will verify your car insurance electronically when you register a car bought from a dealer or renew your registration online. However, you must provide proof of insurance if you register a car bought from a private individual, go to an OMV office to renew your registration, or transfer an out-of-state title.

The OMV accepts the following as proof of insurance:

• An insurance card issued by your auto insurance company
• A copy of your insurance policy
• A copy of your policy declaration page
• A statement from your insurer that must be on your car insurance company's letterhead, signed by your insurance agent or a company representative, include a complete description of your vehicle, and have your vehicle identification number (VIN)

If you are caught driving without proof of insurance, a police officer can either remove your license plate and give you a Temporary Vehicle Use Authorization, allowing you to operate your car for three business days to provide proof of insurance, or impound your vehicle.

Additionally, you can show digital proof of car insurance to a Louisiana law enforcement officer if you are pulled over or involved in an accident. This can be done by presenting an insurance card listing your car insurance policy details or a digital version of the insurance card (or the policy declaration page or other documentation) on your phone or other device.

Registering a new vehicle

Documents Required:

Firstly, you'll need to gather the necessary documents. Make sure you have the following:

• A completed Vehicle Application Form (DPSMV 1799) from your local Office of Motor Vehicles (OMV) office.
• Your driver's license. If you're new to Louisiana, your out-of-state license will suffice.
• Proof of Louisiana car insurance. You can get this from your insurance agent.
• If you're registering a new vehicle, you'll need the Manufacturer's Statement of Origin (MSO) from the dealership. If you're in a state that requires notarization, don't forget to get the MSO notarized.
• An invoice or bill of sale that includes a description of the vehicle. For new vehicles, you'll need the original itemized invoice, while for used vehicles, you'll need the original notarized bill of sale or invoice.
• An odometer disclosure statement, which is typically required for vehicles under 10 years old. This may be included on the title or in a separate statement.
• If you're recording a lien, you'll need a UCC-1 form (financing statement) or another security agreement from your dealer or financier.
• Payment for various fees and taxes, including local fees, lien recording fees, license plate fees, and sales use tax.

The Registration Process:

Once you have all the required documents, follow these steps:

• Ensure you have purchased Louisiana car insurance.
• Visit a local OMV office and submit your completed vehicle application form along with the supporting documents mentioned above.
• You will receive a standard license plate when you register your vehicle unless you apply for a specialty plate.
• If your vehicle is financed, be prepared to pay a fee to record the lien. This fee may vary depending on the documentation provided.
• Your vehicle must pass a safety inspection, and in some parishes, a smog check may also be required as part of the inspection.
• Keep in mind that you must register your vehicle within 30 days of moving to Louisiana to avoid late fees and penalties.

Penalties for driving without insurance

Driving without insurance in Louisiana can result in a range of penalties, including fines, license suspension, vehicle impoundment, and difficulties in recovering compensation after an accident. Here are the details:

Fines

For a first offense, you may face a fine ranging from $500 to $1,000. Repeat offenses can result in even higher fines, with amounts up to $500. These fines can create a significant financial burden, especially when combined with other penalties and the cost of obtaining insurance.

License Plate Confiscation and Registration Suspension

When caught driving without insurance, your license plates will be confiscated, and your registration may be suspended. This means you won't be able to drive your vehicle legally until you provide proof of insurance and pay any applicable reinstatement fees. The reinstatement fees vary depending on the number of offenses, starting at $100 for the first offense and increasing for subsequent offenses.

Vehicle Impoundment

If you are caught driving without insurance, your vehicle may be impounded. This means you will have to pay additional fees for towing, storage, and wreckage to get your vehicle back. These fees can add up quickly and further increase the financial burden of driving without insurance.

Difficulty Recovering Compensation

Louisiana's "No Pay, No Play" law significantly affects uninsured motorists involved in accidents. Under this law, an uninsured motorist is generally prohibited from recovering damages from the other driver. Specifically, an uninsured driver cannot collect the first $15,000 in personal injury damages or the first $25,000 in property damages resulting from the accident. This can leave you financially responsible for repairing or replacing your vehicle and paying for any medical expenses you incur.

Increased Insurance Premiums

If you are caught driving without insurance, you can expect your car insurance premiums to increase. Insurance companies view uninsured drivers as high-risk, and as a result, you may struggle to find affordable insurance in the future.

Impact on Driving Record

Insurance violations, including driving without insurance, will appear on your driving record. This can negatively impact your status as a driver, and insurance companies may consider you a high-risk client, leading to higher insurance rates or difficulty obtaining coverage.

In conclusion, driving without insurance in Louisiana can result in various penalties and challenges. It is essential to understand the consequences and ensure you have the minimum required insurance coverage to avoid these penalties and stay protected in case of an accident.

Customising your insurance

When customising your insurance, you can change your deductible or liability limit, or add coverage for customisations to your vehicle. In the state of Louisiana, you are required to maintain certain minimum amounts of liability insurance in case you cause an accident. The required minimum amounts of liability car insurance coverage in Louisiana are:

• $15,000 for bodily injury or death of one person in an accident caused by the driver of the insured vehicle
• $30,000 for total bodily injury or death liability in an accident caused by the driver of the insured vehicle
• $25,000 for property damage per accident caused by the driver of the insured vehicle

It is important to note that liability coverage does not include protection for you, your passengers, or your own vehicle. Therefore, you may want to consider adding collision coverage, which will pay for repairs or replacement of your vehicle in the event of an accident, regardless of fault. Comprehensive coverage is another option that covers damage to your vehicle caused by things other than a collision or rollover, such as hail damage or a fallen tree.

If you have made customisations to your vehicle, such as a custom paint job or the addition of electronic equipment, you may need to purchase supplemental coverage or a classic/collectible car insurance policy to ensure that your modifications are properly insured.

Frequently asked questions