Louisiana Auto Insurance Requirements

Louisiana law requires all drivers and vehicle owners to maintain minimum auto insurance coverage. The state has been ranked as having the highest auto insurance rates in the nation, making understanding these requirements particularly important.

Minimum Liability Coverage: 15/30/25

What These Limits Mean

• $15,000 Bodily Injury per Person: Maximum paid for injuries to any one person
• $30,000 Bodily Injury per Accident: Maximum paid for all injuries in a single accident
• $25,000 Property Damage: Maximum paid for damage to another person's property

Why Minimum Limits May Be Insufficient

Louisiana's minimum limits are among the lowest in the nation:

• Medical expenses can quickly exceed $15,000 for one person
• Serious accidents often result in damages far exceeding $30,000
• Vehicle values and property damage frequently exceed $25,000
• Drivers may be personally liable for amounts exceeding policy limits

Louisiana Tort System

Louisiana is a traditional fault (tort) state, not a no-fault state.

How the Tort System Works

Comparative Fault System

Louisiana uses a pure comparative fault system:

2024 Comparative Fault Change

Effective with the 2024 insurance reforms (Act 15):

• Drivers found 51% or more at fault are barred from recovering non-economic damages
• This is a significant change from the previous pure comparative fault system
• Economic damages may still be recoverable, reduced by fault percentage

Exam Tip: Louisiana requires 15/30/25 minimum liability coverage. These are among the lowest minimums in the U.S., so higher limits are strongly recommended.

Louisiana's "No Pay, No Play" Law

Louisiana's "No Pay, No Play" law (La. R.S. 32:866) significantly impacts uninsured drivers who are injured in accidents.

What the Law Does

How It Works

If you are driving without insurance and are injured in an accident:

• You CANNOT recover the first $15,000 in bodily injury damages
• You CANNOT recover the first $25,000 in property damage
• Even if the OTHER driver was 100% at fault

Example Scenario

Situation: Uninsured driver injured by an at-fault driver

• Medical bills: $50,000
• Property damage: $30,000

Recovery under No Pay, No Play:

• Bodily injury recovery: $50,000 - $15,000 = $35,000
• Property damage recovery: $30,000 - $25,000 = $5,000
• Total loss to uninsured driver: $40,000

Exceptions to No Pay, No Play

The law does NOT apply if:

• The at-fault driver was intoxicated
• The at-fault driver intended to cause harm
• The at-fault driver fled the scene (hit and run)
• The vehicle was legally parked

Uninsured/Underinsured Motorist Coverage

UM/UIM in Louisiana

Louisiana UM/UIM Rules

• UM/UIM is required unless specifically rejected in writing
• Rejection must be made on a specific form
• Limits default to liability limits unless lower limits selected
• Economic-only UM available (covers medical and lost wages only)

Exam Tip: Louisiana's No Pay, No Play law means uninsured drivers lose the first $15,000 in bodily injury damages and the first $25,000 in property damage, even if they are not at fault.

Penalties for Driving Without Insurance

Louisiana imposes severe penalties for driving without insurance.

Criminal and Administrative Penalties

Additional Consequences

• SR-22 requirement: Certificate of Financial Responsibility
• Reinstatement fees: Must pay to get license back
• Vehicle impoundment: Up to 30 days
• Higher future premiums: Classified as high-risk driver
• No Pay, No Play: Cannot recover full damages if injured

Proof of Insurance Requirements

What Drivers Must Carry

• Insurance identification card
• Electronic proof accepted on smartphones
• Must present upon request by law enforcement

When Proof is Required

• Traffic stops
• At accident scenes
• Vehicle registration
• When filing accident reports

2026 Insurance Reforms

Louisiana enacted significant insurance reforms effective January 1, 2026:

Key Changes

Impact on Consumers

• Greater transparency in premium changes
• Protection for short coverage lapses
• Potential rate decreases (State Farm announced 5.9% reduction)

Exam Tip: Louisiana has some of the highest auto insurance rates in the nation. The 2026 reforms aim to reduce costs through tort reform, transparency, and rate regulation.