Louisiana Minimum Coverage Car Insurance: Requirements and Costs (November 2024)

Name: Louisiana Minimum Coverage Car Insurance: Requirements and Costs (November 2024)
Item: Louisiana Minimum Coverage Car Insurance: Requirements and Costs (November 2024)
Author: Mark Fitzpatrick

Louisiana's minimum car insurance liability limits are 15/30/25. On average, minimum coverage costs $780 annually or $65 monthly.

By Mark Fitzpatrick

Reviewed by Mark Friedlander

Edited by Myjel Guevarra

Updated: October 29, 2024

Advertising & Editorial Disclosure

Louisiana's state minimum car insurance requirements include bodily injury liability of $15,000 per person and $30,000 per accident and property damage liability of $25,000. These limits ensure drivers can cover costs from at-fault accidents. Since Louisiana is an at-fault state, drivers are financially responsible for the damage they cause. To drive legally, residents must have at least this minimum coverage. For more details on Louisiana's minimum car insurance requirements, check out MoneyGeek.

The average monthly cost of minimum coverage in Louisiana is $65, a good option for those seeking the cheapest car insurance in Louisiana. When considering options beyond the state minimum, balance cost and sufficient protection for better financial security. Ensuring you comply with state laws while budgeting effectively is key to confident driving.

TABLE OF CONTENTS

Louisiana Minimum Coverage Requirements
Average Cost of Minimum Coverage Car Insurance in Louisiana
Cheapest Companies in Louisiana for Minimum Coverage
Add-On Coverages in Louisiana
Penalties for Driving Without Insurance in Louisiana
FAQ

Why Trust MoneyGeek? MoneyGeek analyzed data from Quadrant Information Services and the Louisiana Department of Insurance to get the most accurate cost data for various Louisiana drivers.

These rates reflect the cost of minimum coverage car insurance requirements in Louisiana as of November 2024.

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Louisiana Minimum Coverage Car Insurance Requirements

In Louisiana, to legally drive a vehicle, drivers must have the following minimum amounts of car insurance coverage:

$15,000 for bodily injury liability per person
$30,000 for bodily injury liability per accident
$25,000 for property damage liability per accident

The state's adherence to the fault system can influence Louisiana car insurance premiums. In a fault state, the driver who caused the accident is typically responsible for covering the damage. The at-fault party's insurance is expected to pay for medical expenses, vehicle repairs and other associated costs.

ARE COLLISION AND COMPREHENSIVE COVERAGE REQUIRED IN LOUISIANA?

Louisiana doesn't require drivers to carry collision or comprehensive insurance as part of its minimum coverage mandates. However, suppose you finance or lease a vehicle. In that case, the lender or leasing company will typically require both collision and comprehensive insurance to protect its investment in the case of damage or loss. This ensures the vehicle is covered for a wide range of incidents beyond the state-required liability coverage.

In Louisiana, if you own your car outright, you can choose to add collision or comprehensive coverage, but it's necessary if you have a car loan or lease.

What Does Minimum Coverage Cover?

What Liability Insurance Covers	What Liability Insurance Doesn't Cover
Injuries to others if you're at fault in an accident	Your injuries
Damage to another person’s property if you're at fault in an accident	Damage to your car
Some coverage for injuries caused by uninsured or underinsured drivers, depending on your policy	Property damage caused by uninsured or underinsured drivers unless additional coverage is purchased
	Repairs for weather-related accidents or if you were hit by an animal

The table reflects Louisiana's minimum car insurance requirements, including bodily injury and property damage coverage. Remember, your individual policy's terms and conditions will determine the exact coverage details.

Average Cost of Minimum Coverage Car Insurance in Louisiana

Age is often the biggest factor in determining minimum coverage car insurance rates. In Louisiana, drivers aged 22 to 29 face the highest premiums because younger drivers are statistically more likely to be involved in accidents and have less experience than older drivers.

The table below shows Louisiana's average minimum coverage cost by age group, highlighting how insurance rates vary with age.


22-29	$935	$78
30-59	$780	$65
60 +	$893	$74

Cheapest Companies for Minimum Coverage Car Insurance in Louisiana

Louisiana residents seeking minimum coverage auto insurance will find the most affordable options with:

Louisiana Farm Bureau: $471 per year; $39 per month
Progressive: $606 per year; $50 per month

Although these rates offer savings, consider the best car insurance in Louisiana that fully meets your coverage needs.

Data filtered by:Results filtered by:

Age Group:

Age Group:30-59


Louisiana Farm Bureau	$471	$39
Progressive	$606	$50
GEICO	$668	$56
State Farm	$755	$63
AAA	$831	$69
Allstate	$1,348	$112

Optional Add-On Coverages in Louisiana

In Louisiana, optional add-ons include collision, comprehensive, medical payments, uninsured motorist and towing and labor coverage. Although not required by law, these can safeguard your finances after an accident or unforeseen event. Deciding how much car insurance you need depends on your circumstances, but these coverages offer protection on the road.

Add-On Coverage	What It Covers	What It Doesn't Cover
Uninsured/Underinsured Motorist Coverage	Medical expenses, lost wages and repair costs if you're hit by a driver with no or insufficient insurance	Damage to your vehicle if you are at fault or damage that exceeds policy limits
Personal Injury Protection (PIP)	Medical expenses, lost income and funeral costs for you or your passengers, regardless of who's at fault	Vehicle damage or injuries to the other driver
Roadside Assistance	Services like towing, flat tire changes and jumpstarts when your car breaks down	Cost of parts or repairs needed after the tow
Gap Insurance	Pays the difference between your car's current value and what you still owe if it's totaled or stolen	Vehicle depreciation or overdue loan payments
Rental Car Reimbursement	The cost of a rental car while your vehicle is being repaired after a covered event	Fuel, insurance or other rental extras
Collision Coverage	Repairs to your car after an accident, regardless of fault	Damage due to theft, vandalism or natural disasters
Comprehensive Coverage	Repairs to non-collision damage from events like theft, fire or hail	Damage from a collision or personal injuries
Towing and Labor Coverage	Towing and basic roadside assistance labor costs at the site of your vehicle's breakdown	More extensive repairs needed at a garage
Custom Parts and Equipment Coverage	Safeguards aftermarket enhancements like custom wheels or stereo systems	Original parts that came with your vehicle
Accidental Death Coverage	Offers a payout if you or a passenger dies or experiences certain injuries in a car accident	Non-accidental death or injuries
Classic Car Insurance	Agreed-upon values for your unique vehicle, tailored for vintage or collector cars	Regular use, like your daily commute

Penalties for Driving Without Insurance in Louisiana

In Louisiana, the cost of a ticket for driving without insurance can vary significantly, especially if you have a past offense. Penalties can range from fines to more severe consequences for repeated violations. If it's your first time getting caught, the repercussions may be lighter, but the financial impact can still be significant. The penalties often increase for those with prior offenses, reflecting the higher risk and disregard for the law. Additional potential penalties for driving without minimum coverage in Louisiana may include:

Vehicle impoundment: Your vehicle may be held somewhere, and you may need to pay extra fees to retrieve it.
Vehicle registration suspension: The state may suspend your car's registration.
License suspension: Your driving privileges may be removed temporarily.
Mandatory SR-22 documentation: You could be mandated to carry this certificate as proof of future financial responsibility.

Adhere to insurance regulations in Louisiana. Compliance helps you avoid legal penalties and ensures that you're financially protected in the event of an accident. Carry at least the state minimum coverage to safeguard against unexpected costs and legal trouble.

What to Do if Your Policy Is Canceled

If your car insurance policy is canceled in Louisiana, immediately contact an insurance agent to obtain a new policy; driving without insurance is illegal. After a policy cancellation, the Louisiana Office of Motor Vehicles (OMV) may be notified, potentially resulting in fines or registration suspension. Continuous coverage is essential to avoid penalties or even losing your driving privileges.

There are options for Louisiana drivers struggling to get insured. The Louisiana Automobile Insurance Plan (LAIP) allows high-risk drivers to obtain insurance and can ensure you carry at least the state minimum coverage. This state-backed program allows everyone to maintain the necessary insurance legally required to drive.

For detailed coverage options, consider contacting the Louisiana Department of Insurance or visiting its website for guidance. Remember, driving without at least minimum coverage is a risk that can have serious legal and financial consequences.

WHY WAS MY POLICY CANCELED?

Your car insurance policy in Louisiana may have been canceled for a few reasons:

Non-Payment: The company can cancel your coverage if you miss paying your insurance premiums.
Fraud: Lying on your insurance application or making a false claim can lead to cancellation.
License Issues: Having your driver's license suspended or revoked means you no longer meet the insurance requirements.
Too Many Claims: Filing too many claims in a short period can signal high risk to insurers, which may cause them to drop your policy.
State Minimum Changes: If Louisiana changes its minimum coverage requirements and you don't update your policy, it could be canceled.

FAQ: Louisiana Minimum Coverage Car Insurance

We provide clear answers to your questions about Louisiana's minimum car insurance requirements.

What is the minimum car insurance coverage in Louisiana?

In Louisiana, the minimum car insurance coverage includes $15,000 for bodily injury liability per person, $30,000 for bodily injury liability per accident and $25,000 for property damage liability per accident. This minimum coverage is mandatory for all motorists to ensure financial responsibility in the event of an accident. Understanding these requirements is crucial for drivers seeking to abide by Louisiana's insurance laws and protect themselves.

Why does Louisiana require minimum automobile liability coverage for motorists?

Louisiana requires motorists to carry minimum automobile liability coverage to ensure they can cover expenses for damage or injuries caused in an accident. This requirement protects all road users from the high costs of collisions and encourages responsible driving. Having this coverage also ensures that victims of road accidents receive compensation quickly and without legal complications.

Do you need comprehensive insurance in Louisiana?

In Louisiana, comprehensive insurance isn't required by law, but it can be a wise investment, especially considering the state's risk of extreme weather that can damage vehicles. Lenders may require comprehensive insurance if you're financing or leasing your car. This coverage protects against non-collision-related damage, helping you financially if your vehicle is stolen, vandalized or damaged by natural disasters.

What happens if you drive uninsured in Louisiana?

Driving uninsured in Louisiana can lead to serious penalties, including fines of $500 to $1,000, possible vehicle impoundment and suspension of your driver's license. You may also be required to carry an SR-22 certificate for up to three years. To reinstate your driving privileges, you must provide proof of insurance and pay any fines and reinstatement fees. To avoid these consequences, maintain at least the minimum coverage.

About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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