Car Insurance

Many people groan each month as they're writing the checks for their insurance payments. However, making those payments every month doesn't seem so painful in the unfortunate event that you do need assistance after an accident.

Insurance Requirements

In Louisiana, you must show proof of insurance during most driver's license and registration transactions.

Most vehicles must have liability insurance. The amount of insurance necessary depends on the weight of the vehicle.

• 20,000 pounds or less: $10,000/$20,000 bodily injury and $10,000 property damage

• 20,001-50,000 pounds: can either have $25,000/$50,000 bodily injury and $25,000 property damage, or a single combined limit of no less than $75,000

• 50,001 and over: can either have $100,000/$300,000 bodily injury and $25,000 property damage, or a combined single limit of $300,000

Exceptions include vehicles used primarily for display or parades, vehicles owned by the U.S. or Louisiana, and buses owned by the city.

To show proof of insurance, you may use copies of the following:

• Your insurance policy or binder.

• The I.D. card issued by your insurance company.

• Your declaration page.

• A written statement from the insurance company or agent as long as the letter is on company letterhead, includes all of your vehicle's information, and is signed by your insurance agent.

You can read more about Louisiana insurance in the following online publications which can be viewed using the free Adobe Reader:

• Louisiana Register 09/98

• Louisiana Register 01/00

• Louisiana Register 12/04

• Reporting Specifications

Penalties

Louisiana doesn't play around when it comes to insurance. Providing false information about your insurance could result in fines and jail time, in addition to having your registration suspended.

You must have proof of insurance in your vehicle at all times. If you're found driving without proof of insurance, the officer will take your license plates and impound your vehicle.

At that point, you'll have three business days to provide proof of insurance to the Office of Motor Vehicles (OMV) location listed on the violation.

If you fail to show proof of insurance after three days, your license plates will be destroyed and you'll be required to register your vehicle again.

Cancelled Insurance

All Motor Vehicle Reinstatement Offices handle insurance cancellations and reinstatements.

If your insurance is cancelled, your license will be "flagged," and you won't be able to renew your registration or driver's license until the flag is lifted.

In order to remove the flag, you need to show proof of insurance effective within 10 days of the date the insurance was cancelled or show proof that the vehicle was sold, traded, junked, or moved out-of-state.

If you don't provide proof of insurance within 10 days, you'll be charged the following reinstatement fees:

• 11-30 days: $50

• 31-90 days: $125

• 91 days or more: $225

However, if you no longer operate your vehicle and decide to cancel the insurance, you're required to submit your license plates to your local OMV location 10 days before you cancel.

Or, you can submit a Statement of Non-Use using the free Adobe Reader to:

• Office of Motor Vehicles

• P.O. Box 64886

• Baton Rouge, LA 70896