Penalties for Driving Without Insurance in Louisiana

Man pulled over for a traffic stop
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Do you know the risks involved if you are caught driving without car insurance in Louisiana? The penalties might surprise you. Not providing proof of insurance promptly could lead to the loss of your vehicle and even more fines. Take a look at what you are up you could be facing.

Louisiana State No Proof of Insurance Penalties

Failure to abide by minimum car insurance laws in Louisiana could lead to fines, limited recovery of damages, or impoundment of your car. Even neglecting to carry proof of insurance—meaning you forget your insurance card at home when you’re out driving on the road—can quickly cause you to have your car impounded or the license plates removed and a yellow sticker attached to the back windshield.

After you are pulled over and fail to provide proof of car insurance, you have three days to provide proof of insurance to government officials. If you fail to do so and are stopped again, the car will be immediately impounded until proof of insurance is provided and all fees have been paid. These fines can range from $75 to over $700.

Car Accident With No Car Insurance

If you’re in an accident and you don’t have car insurance, you’re going to be in severe financial trouble -- whether or not you were at fault in the crash. If you fail to carry insurance and are in a collision with another person who does have proper coverage, Louisiana's "No Pay, No Play" law stops you from collecting the first $25,000 in property damage and $15,000 of personal injuries, even if the other person caused the accident.

Despite what a dangerous idea it is, it's not hard to see why drivers choose to take the risk of driving without car insurance in LA. Louisiana has some of the highest car insurance rates in the country. In 2012, New Orleans was recorded as averaging $3,600 annual car insurance premiums. It is pretty hard to make ends meet when mandatory expenses are so high.

Unfortunately, even though monthly premiums can be difficult to afford, it is even more expensive to be found without the proper coverage -- particularly if you get into a car accident. To make auto insurance more affordable, shop around for the best rate. Ask friends and family to recommend an insurance agent to you -- in addition to the fact that your friend will often end up getting a referral bonus, there are often enticing offers for those looking to sign-on to a new insurance company, because they’re in the business of recruiting customers and keeping them happy. You might be able to get a discount if you choose the same carrier that provides your home, rental, life, or health insurance policies. Aim to keep your driving record as clean as possible. When you are accident and ticket-free, your car insurance premiums will be much more affordable.