Louisiana car insurance rates

Louisiana's liability floor is 15/30/25: $15,000 for bodily injury to one person, $30,000 for injuries to two or more people, and $25,000 for property damage in one accident (La. R.S. 32:900(B)(2)). Every self-propelled vehicle registered in the state must carry it or an approved substitute (R.S. 32:861).

Two Louisiana rules change how that floor works in practice. Uninsured motorist coverage is built into each policy at the bodily injury limits unless the named insured signs the commissioner's form to reject or reduce it (R.S. 22:1295). And under R.S. 32:866, an owner or driver who had no compulsory coverage cannot recover the first $100,000 of bodily injury or the first $100,000 of property damage from a crash.

The $100,000 bar on recovery for uninsured drivers, R.S. 32:866

Louisiana's version of no pay, no play is now set at $100,000 each for bodily injury and property damage. The person who failed to own or maintain compulsory liability security loses the right to recover that first slice, whoever caused the accident. A defendant found liable can raise the bar as an affirmative defense. If the uninsured owner sues and is awarded $100,000 or less for bodily injury, that owner pays all parties' court costs.

The bar does not apply in these cases under 32:866(A)(3):

• the other driver is cited for operating while intoxicated under R.S. 14:98 and is convicted or pleads no contest;
• the other driver caused the accident on purpose or fled the scene;
• the other driver was furthering a felony at the time.

Passengers keep their right to recover from a negligent driver, unless the passenger is also the owner of the uninsured vehicle.

UM coverage: rejection only on the commissioner's form

R.S. 22:1295(1)(a)(i) requires uninsured motorist coverage in every auto liability policy delivered in Louisiana, at limits no lower than the policy's bodily injury limits. The same coverage protects against underinsured drivers. A named insured has three ways out, and all of them require the form prescribed by the commissioner, signed by the named insured or a legal representative:

• reject UM entirely;
• select lower UM limits, though not below the 32:900 minimums;
• select economic-only UM, a reduced-premium version that excludes noneconomic loss such as pain, suffering and mental anguish.

A properly completed, signed form creates a rebuttable presumption that the insured knowingly chose that option. It stays valid for the life of the policy, including renewals and substitute policies from the same insurer or its affiliates. The insured can change the selection at any time by signing a new form. The insurer may have the producer collect the form, but the insurer must check it and keep the copy. The UM/UIM coverage guide describes what each limit choice protects.

Claim payment deadlines in R.S. 22:1892

Missing the 14-day start exposes the insurer to a penalty of at least $5,000. Under 22:1892(B)(1), failing to pay or make an offer within 30 days, when that failure is found arbitrary, capricious or without probable cause, adds a penalty of 50% of the amount due, or $1,000 if greater, plus proven economic damages, reasonable attorney fees and costs. A partial payment shifts the 50% to the unpaid difference. For a record of the steps on your side, see how to file a car insurance claim.

Lapse sanctions and proof of financial responsibility

When the Office of Motor Vehicles finds a vehicle without required security, R.S. 32:863 directs revocation of the registration, impoundment of the vehicle and cancellation of the plate. Those sanctions stay until proof of coverage is filed and reinstatement fees are paid. For a lapse, the fee scales with its length: $100 for 1 to 30 days uninsured, $250 for 31 to 90 days, and $500 beyond 90 days. No fee is charged for a gap of ten days or less if the plate is surrendered within ten days. An owner who stops using a vehicle can avoid sanctions under 32:861(A)(3) by surrendering the plate within ten calendar days of canceling the coverage.

When a driver is ordered to show proof of financial responsibility, the filing usually called an SR-22, R.S. 32:897 allows an insurer's certificate, a bond, or a deposit with the state treasurer. R.S. 32:909 is one sentence long: anyone required to give proof must keep it for three years. Under 32:908, the commissioner releases the proof after those three years only if no conviction or bail forfeiture that would support suspension was recorded during them. Someone who gave up license and registration to end the filing early must restore proof for the rest of the three years before getting them back. The SR-22 guide covers the filing from the insurer's side.

Last-resort coverage and LDI complaints

The Louisiana Department of Insurance (LDI) calls its residual market the Louisiana Automobile Insurance Program, "the auto insurer of last resort for Louisiana drivers." A driver who cannot buy coverage in the private market applies through an agent.

For a dispute over a personal auto damage claim, the LDI directs policyholders to its online complaint form, and its Office of Consumer Services answers policy questions. The consumer hotline is 1-800-259-5300, and the Office of Property and Casualty can be reached at (225) 342-1258. A complaint that lists the dates of proof of loss and of any offer lets the department compare the file against the 22:1892 clock.

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