Louisiana Car Insurance Requirements (Updated for 2025)

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Louisiana is an at-fault (tort) state with some of the highest insurance rates in the U.S. Drivers must carry minimum liability coverage and face significant penalties for non-compliance, including fines, suspensions, impoundment, and a strict “No Pay, No Play” rule.

Minimum Required Coverage in Louisiana

As of 2025, Louisiana requires:

  • Bodily Injury Liability (BI): $15,000 per person / $30,000 per accident
  • Property Damage Liability (PD): $25,000 per accident

Often referred to as “15/30/25” coverage.

Uninsured/Underinsured Motorist Coverage (UM/UIM)

Insurers must offer UMBI and UMPD, but they are optional and must be declined in writing. UMBI includes an option for economic-only coverage.

  • Uninsured Motorist Bodily Injury (UMBI): $15,000 per person / $30,000 per accident
  • Uninsured Motorist Property Damage (UMPD): Up to $25,000 if you don’t have collision coverage

“No Pay, No Play” Law

If you’re uninsured and injured by another driver, you’re barred from recovering the first $15,000 in BI and $25,000 in PD, even if you’re not at fault :contentReference[oaicite:1]{index=1}.

Proof of Insurance Requirements

Drivers must carry valid proof—an insurance ID card or digital copy—and present it when requested. Failure to show proof can lead to impoundment, plate removal, fines, and registration suspension :contentReference[oaicite:2]{index=2}.

Penalties for Driving Without Insurance

  • Fines: $500–$1,000
  • License and registration suspension until proof is submitted
  • Vehicle impoundment & plate removal; yellow sticker until compliant
  • SR‑22 filing required for high-risk drivers (typically 3 years)

Optional Coverages to Consider

  • Collision & Comprehensive (not required but often lender-mandated)
  • MedPay
  • Rental Reimbursement
  • Roadside Assistance

UMBI/UMP D and higher liability limits are strongly recommended given high uninsured rates (~11–13%) and frequent litigation :contentReference[oaicite:3]{index=3}.

Insurance Rates & Lawsuit Climate

Louisiana’s average full-coverage premium is around $2,883–$3,998 annually—well above national rates—due to high litigation, frequent accidents, natural disasters, and attorney advertising :contentReference[oaicite:4]{index=4}.

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FAQs

Is Louisiana a no‑fault state?

No—Louisiana is an at-fault (tort) state; the at-fault driver’s insurance pays damages.

What does “No Pay, No Play” mean?

If you’re uninsured, you can’t recover the first $15,000 in BI or $25,000 in PD, even if you’re not at fault :contentReference[oaicite:5]{index=5}.

Is UM/UIM coverage required?

No—but insurers must offer it. It’s optional and must be declined in writing if not wanted :contentReference[oaicite:6]{index=6}.

Disclaimer: This information is provided for general informational purposes. Verify requirements with your insurance provider or the Louisiana Department of Insurance/DMV.