Louisiana drivers are required to maintain continuous auto liability insurance throughout the duration of their driving and registration privileges. To comply, Louisiana drivers must carry bodily injury and property damage limits of at least $15,000 per person, $30,000 per accident and $25,000 in property damage.
Louisiana drivers are lawfully permitted to drop their auto insurance coverage when their vehicles will not be operated on the roadways. To do so, drivers must complete a Vehicle Statement of Non-Use and submit it to the Louisiana OMV, or Office of Motor Vehicles. The completed form must include the vehicle's model year, identification number, or VIN, license plate number and registration expiration date. The form must be submitted no later than 10 days after the vehicle's insurance termination, but it should be submitted prior to the insurance cancellation to avoid fees and penalties. Once processed, the OMV will update the system to show that the vehicle is no longer insured and should not appear in operation on the Louisiana roadways.
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Louisiana's auto insurance mandates require drivers to prove their compliance upon the request of a law enforcement officer. If the driver fails to provide proof of insurance, the law enforcement officer can confiscate the vehicle's license plates, impound the vehicle or affix a yellow sticker of noncompliance in the vehicle's window.
Noncompliant drivers are given three business days to prove compliance. License plates that have been confiscated are destroyed after this period. Impounded vehicles remain in storage, accumulating fees, until the vehicle owner shows valid proof of insurance to the OMV and pays all fines, storage fees, citations and new vehicle registration and license plate fees. Uninsured driving fines can range from $75 to $700, depending on the number of uninsured convictions.
No Pay, No Play
Louisiana prohibits uninsured drivers from benefiting from insurance coverage during vehicle accidents. Under the state's "No Pay, No Play" law, the uninsured, not at-fault driver is restricted from collecting the "the first $25,000 in property damage and the first $15,000 in personal injury," according to the Louisiana Department of Insurance's "Consumer's Guide to Auto Insurance."