All 50 U.S. states require drivers to carry auto insurance, but the amount of required coverage varies from state to state. Louisiana is among the least strict states regarding insurance requirements, but it is recommended that all Louisiana drivers educate themselves on the different types of auto insurance to determine which types of coverage to buy. Because the minimum coverage amounts are often insufficient to cover the costs of an accident, it is recommended that Louisiana drivers purchase more than the minimum required coverage.

Minimum Required Insurance Coverage in Louisiana

BIL (Bodily Injury Liability): Liability coverage for injuries/deaths in the other vehicle

• Minimum of $10,000 for one person
• Minimum of $20,000 total for the other driver and all passengers

PDL (Property Damage Liability): Liability coverage for damage to the other driver’s vehicle or property, and any public or private property surrounding the accident scene

• Minimum of $10,000 for all property damage, including damage to public property in the vicinity of the accident

About Liability Insurance

In general, whichever driver is at fault for an accident assumes the financial responsibility for all injuries and damages. Liability insurance is designed to cover the cost of injuries/deaths in the other vehicle, as well as damage to the vehicle itself and surrounding property, if you are at fault for the accident. Liability coverage does not cover your own property damage, or injuries to yourself or your passengers. If the other driver is at fault for the accident, his/her liability insurance will cover the costs of your injuries and the damage to your vehicle. If both drivers in an accident carry liability-only coverage, only the faultless driver’s expenses will be covered by insurance.

Other Recommended (but not Required) Insurance Coverage for Louisiana Drivers

• PIP (Personal Injury Protection): Covers injuries to yourself and/or your passengers resulting from an accident that is your fault
• Collision Coverage: Covers damage to your property and surrounding property if you are at fault for an accident
• UMC (Uninsured/Underinsured Motorist Coverage): Covers your costs if you are involved in an accident in which the other driver is at fault, but has no coverage or insufficient coverage to pay your expenses
• UMC Economic-Only Coverage: Same as above, but only provides coverage for actual costs, and excludes benefits for pain and suffering and other non-monetary damages
• Comprehensive Coverage: Covers property damage resulting from incidents other than traffic accidents, such as fire, flood, vandalism, and theft

If you have a loan, lease, or lien on your vehicle, you may be required to carry more comprehensive insurance than what is required by the state.

About Personal Injury Protection

Personal Injury Protection (PIP) is designed to cover the costs of your injuries in an accident that is your fault. Your health insurance may already provide this type of benefit, so you should check with your health insurance provider before purchasing an additional PIP plan from your auto insurance provider. However, please note that PIP auto insurance coverage also applies to all passengers in your vehicle, whereas your health insurance will only benefit you, your dependents, or anyone else specifically listed on your health plan.

State-Issued Proof of Insurance

Louisiana drivers are required to carry proof of insurance in their vehicles at all times. If you are involved in a traffic accident or traffic stop, you will be asked for proof of insurance. If you cannot provide it, the officer(s) on the scene has the option of impounding your vehicle. Alternately, your registration tags may be removed and replaced with a yellow sticker indicating your lack of required proof of insurance. In either case, you have 3 days to present proof of insurance to a Louisiana Office of Motor Vehicles and to reclaim your vehicle or tags. If you miss the 3-day deadline, you face further impoundment of your vehicle, reinstatement fees, and tow fees. The fines for failure to provide proof of insurance increase with each successive offense:

• 1st offense: $75-100
• 2nd offense: $100-200
• 3rd and successive offenses: up to $700

“No Pay, No Play” Law

The state of Louisiana also has a law called “No Pay, No Play,” which is designed to withhold insurance payouts for uninsured drivers who are involved in an accident. Following this law, uninsured drivers are denied the first $10,000 in benefits for injuries and the first $10,000 in benefits for property damage that would otherwise have been covered by your liability insurance. In other words, even if you are at fault for an accident in which the other driver is uninsured, your insurance company will not be required to pay any amount up to $10,000 in either category of damages. For amounts exceeding $10,000 in either area, your insurance company will still be required to pay the difference to the uninsured driver, however, that driver will consequently be subjected to fines and penalties for driving without insurance.