What Is The Mandatory Auto Insurance Coverage In Lousiana?

By Author: Michael Scott
Total Articles: 46
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In the state of Louisiana (LA), operating motor vehicles on LA roadways without liability insurance coverage is illegal. Each US state has specific limits of liability insurance. While some states may refer to it as mandatory liability coverage; others may call it compulsory coverage. But all mean the same, which is the basic minimum that each individual driver should have for their vehicle.

In the State of Louisiana, the minimum mandatory insurance coverage is:
- $10,000 bodily injury for one person in one accident
- $20,000 for two or more persons in one accident
- $10,000 property damage incurred in one accident

Louisiana's minimum liability limits is one among the lowest in the US. However, a new law takes effect in LA by January 2010, increasing the minimum requirement to 15-30-25, which means the policy holder need to have:
- $15,000 bodily injury for one person in one accident
- $30,000 for two or more persons in one accident
- $25,000 property damage incurred in one accident

You have to remember that proof of insurance should always be in your person or at ...
... least in your glove compartment at all times. You need to show this as proof of insurance, normally an insurance card, at the time of a traffic stop or at the time of an accident in which damage or injury occurs. Law enforcement officers would generally look for this insurance card, and you must present it without delay. A lapsed policy or one that has not been renewed would result to the Louisiana Department of Motor Vehicles (DMV)'s suspension of your driving privileges until proof of insurance is provided.

However, proof of financial responsibility in the form of SR-22 insurance will be required from you by the Louisiana DMV if, you incur an accumulation of violations, such as reckless driving, driving under the influence (DUI) or (DWI), or refusal to test, at fault accidents or driving without insurance.

An SR-22 insurance policy is a rider to a high-risk auto insurance policy. It works as a guarantee, by the auto insurance provider, that the driver has and maintains the very basic mandatory liability insurance for a specific period of time. Another form of compliance to indicate financial responsibility would be to purchase a bond in the amount specified by the State of Louisiana - usually between $30,000 and $50,000, issued by an authorized surety or insurance.

The length of time that proof of SR-22 high-risk auto insurance must be provided is determined based on the seriousness of the violation(s). The length of time can be between 3 - 5 years. However, after 36 consecutive months with no additional violations, the requirement for SR-22 insurance may be stopped. And the minimum auto insurance is the only one in effect, as kept for by the driver.

Lousiana driver? Knowing the mandatory auto insurance requirement for your state is a must. We hope that you are taking note as well of the increase in your required minimum after this year is over.
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