Louisiana Car Insurance Laws & Requirements (2023)

WRITTEN BY: Julia Matseikovich


Louisiana has some of the cheapest auto insurance rates in the country. But there are stiff penalties motorists may face if they choose to drive without car insurance coverage. Below, this article will explore mandatory insurance minimums, optional coverages, and the state’s penalties for driving without insurance.

Louisiana Car Insurance Minimum Requirements

Louisiana only requires drivers to carry liability coverage to drive legally. But they need specific amounts of coverage to do so. And these limits are relatively low, which is why many Louisiana drivers can afford to drive legally for less than $80 per month in premiums. 

Liability Coverage in Louisiana

There are two types of liability coverage that every auto insurance company offers: bodily injury and property damage liability. And bodily injury coverage is divided into two classes: bodily injury per person and bodily injury per accident. 

If a driver gets into a car accident that is their fault, the injured party will file claims against the at-fault driver’s insurance provider. The at-fault driver’s liability coverage will pay for medical bills and property damage. But if the damages exceed the liability coverage limits, the injured party can go after the at-fault driver’s assets.  

State-mandated auto insurance limits you should know

Liability coverage protects the driver in case they accidentally cause a wreck while driving. That’s why almost all states mandate liability coverage for motorists to drive legally. No matter what, if all parties involved in an accident have liability coverage, everyone will be financially protected. Louisiana’s legally mandated liability coverage limits are as follows: 

  • $15k bodily injury liability per person
  • $30k bodily injury per accident
  • $25k property damage liability

Are Louisiana’s Minimum Requirements Providing Enough Coverage?

Most industry experts will caution drivers to purchase as much liability coverage as they can reasonably afford. This is because the minimum requirements are relatively low, especially for bodily injury liability. 

Louisiana’s minimum requirements aren’t as low as in some states, but they still pose a risk to the policyholder. Medical costs are so expensive these days that the 15/30 bodily injury minimums can get exhausted quickly. And once the coverage limits get spent, the injured party can sue the at-fault driver for the rest of the damages. That driver could have their assets liquidated to pay the difference, leading to property loss and possible financial ruin. 

Penalties for Driving Without Proof of Insurance in Louisiana

Any Louisiana driver caught driving without insurance coverage will be subject to the penalties in the table below. Additionally, uninsured drivers who aren’t at fault in a car accident must adhere to Louisiana’s “No Pay, No Play” law. The law prevents any motorist who sustains less than $25,000 in property damage and/or less than $15,000 in bodily injuries from filing claims against the at-fault driver’s insurance company. If the damages surpass those thresholds, the injured driver can file claims for dollar amounts in excess of those limits. 

PenaltyFirst OffenseSecond OffenseThird (or more) Offense
FineBetween $500 – $1,000Between $500 – $1,000Between $500 – $1,000
Fees$60 reinstatement fees; towing & storage fees$160 reinstatement fees; towing & storage fees$510 reinstatement fees; towing & storage fees
Driver’s LicenseSuspendedSuspendedSuspended
Vehicle RegistrationRevoked (180 days)Revoked (180 days)Revoked (180 days)
Vehicle Impoundment?YesYesYes
SR-22 Requirement?YesYesYes

Louisiana’s Optional Car Insurance Coverage

So far, we’ve only discussed the minimum amount of coverage a driver needs to drive legally. But not only are motorists free to increase their coverage limits, they can also add any or all of the following to their policy:

  • Collision & comprehensive – these coverages pay for damages if the policyholder damages their vehicle in a collision (regardless of fault) or if an act of God damages their vehicle or the property within
  • Personal Injury Protection (PIP) – this coverage pays for the policyholder’s medical expenses regardless of fault
  • Loan/lease payoff – Most people refer to this as “gap coverage”; it helps a driver pay off the remainder of their auto loan if the actual cash value of their totaled vehicle is less than what they still owe their lender
  • Roadside assistance – Flat tire? Run out of gas? Dead car battery? Roadside assistance provides free help (or at least a free tow to the nearest body shop) if the policyholder’s vehicle gets stranded
  • Rental car reimbursement – the policyholder can get reimbursed for having to rent a car to get around while their vehicle is getting repaired/replaced
  • Uninsured/underinsured motorist bodily injury – often shortened to UM/UIM, this pays for medical expenses if the policyholder is involved in an accident with an at-fault driver who either doesn’t have sufficient coverage to pay damages or has no coverage at all; this also pays for hit-and-run damages
  • UM/UIM property damage – same as above, but for property damage

Why it’s important to follow Louisiana car insurance laws and requirements

It’s important for one very simple reason: most Louisiana motorists need to be able to drive in order to get around. Disobeying these laws will get a driver’s license and registration suspended. Getting back on the road will also cost a small fortune in fines and fees. In a worst-case scenario, it can even lead to job loss from missing work. 

Purchasing at least the minimum state auto insurance requirements also protects the policyholder from financial disaster after an accident. Regardless of fault, the driver with no insurance can face tens of thousands of dollars or more in expenses. It simply isn’t worth the risk, considering how cheap Louisiana car insurance can be. 

How Much Does the Minimum Car Insurance Cost in Louisiana?

Several variables will determine a motorist’s final premium calculation. Credit score, accident history, past tickets, and the make/model of the insured vehicle will all have an impact on the final price. Comparing rates between multiple providers is the only way to make sure a driver is getting a fair deal. 

Southern Farm Bureau is the most affordable insurance company for the vast majority of Louisiana motorists. GEICO and State Farm are slightly more expensive but still in the double digits. It’s worth mentioning that USAA offers some of the cheapest rates, but since it’s not available for civilians, it only gets an honorable mention. 

Cheapest minimum liability car insurance in Louisiana

Southern Farm Bureau$64
State Farm$91

Minimum Car Insurance Requirement in Louisiana When Leasing a Car

If you’re leasing your vehicle, your insurance requirements will be higher because you don’t technically own that asset. The dealership owns it and wants to protect its investment. That’s why most Louisiana drivers with a leased vehicle require full coverage auto insurance with 100/300/50 bodily injury and property damage liability limits. 


What is full coverage car insurance in Louisiana?

Full-coverage auto insurance includes comprehensive, collision, and PIP coverage on top of the state-mandated minimum liability coverage. But most full-coverage auto policies will come with higher liability coverage limits than what the state mandates. 

Is Louisiana a no-fault state?

No, Louisiana is an at-fault state. This means that a judge will determine fault based on evidence collected at the scene of an accident. The liability coverage on the at-fault driver’s auto policy will pay for the other party’s injuries and damages up to the policy limits. Other elective coverages may also pay out claims regardless of fault.  

Does Louisiana require PIP or uninsured motorist coverage?

Both of these coverages are elective in Louisiana. PIP coverage (personal injury protection) pays the policyholder’s medical bills regardless of fault. Although uninsured motorist coverage isn’t mandatory, it’s still a good purchase since nearly 12% of Louisiana drivers are currently driving without insurance coverage. 

Get Coverage That Meets Louisiana’s Car Insurance Requirements

Meeting Louisiana’s auto insurance requirements is simple and affordable. But that doesn’t stop some motorists from driving without coverage (and facing stiff penalties as a result). Anyone having trouble finding affordable car insurance in Louisiana can access fast, free quotes from our auto insurance database. You can get cheap insurance coverage more quickly than you ever thought possible!