Cheap Car Insurance Quotes in Louisiana – LA

The law in Louisiana requires that auto insurance companies promptly report to the Office of Motor Vehicles (OMV) that their clients have cancelled their liability coverage. Once the OMV learns of this fact, these drivers’ licenses will be marked with a flag and their registrations will be suspended.

Louisiana drivers will not want their licenses to be flagged because auto insurance companies will not be violating any laws if they re-assign these clients to a higher risk category. Once they have done this, they can raise these clients’ rates. The fact that drivers are willing to drive uninsured means that these people are willing to take several risks and this makes them very risky to insure.

The only consequence of cancelling liability coverage and not replacing it with another policy is not a flag on their licenses. The OMV will also be able to suspend these car owners’ registrations. To be able to drive again with auto insurance coverage, these Louisiana drivers will have 10 days to present proof that they have the required liability coverage.

The Cost of Reinstating a Vehicle’s Registration

In the event that drivers neglect to replace their old coverage with a new policy, they may not have proof of insurance to show the OMV before the grace period ends. In this case, they will need to purchase a policy and then pay the following reinstatement fees:

• $50 between 11 and 30 days
• $125 between 31 and 90 days
• $225 after 91 days and more

The Fines 

Along with reinstatement fees, Louisiana drivers will need to pay fines if they drive uninsured. The second offense gives them a $150 fine and a third offense or more offers them a $500 fine. Louisiana drivers must keep in mind that their auto insurance companies will also continue to raise their rates or may even cancel their policies with each new offense.

The Cost of Car Insurance in Louisiana

Louisiana is one of the most expensive states for purchasing auto insurance. In difficult economic times, people often look for ways that they can cut back on their expenses and insurance coverage is one of the first places that people consider. Louisiana drivers are paying higher rates than the national average with the average rate currently equal to $2,273.36 for the year.

Allowing their auto insurance coverage to lapse is not the ideal way for drivers to save money. It can backfire badly because Louisiana is a tort state and because of this, drivers who cause an accident are charged with making restitution to all those who are injured or have their property damaged in a car collision. This can all be very costly.

Lawsuits Due to Car Collision 

In tort states like Louisiana, lawsuits concerning injuries due to car collision are not restricted. This means that the injured can sue for pain and suffering as well as to have their medical bills paid by the at-fault driver. Those who have assets that can be sold may be forced by the court to liquidate them in order to pay these bills. The possibility also exists that they will have to have their wages garnished to pay this debt.

Another option is to seek discount insurance quotes in Louisiana for the required coverage that the state mandates they purchase. They will receive quotes for bodily injury and property damage liability that will help them pay the medical bills or funeral expenses of those hurt or killed in a car collision and will pay to have damaged property repaired.

Required Liability Insurance Coverage 

In Louisiana, each auto insurance company is required to have liability coverage in the insurance packages it sells to its clients. They are also required to sell it in the limits that Louisiana has set. For bodily injury liability for one person’s injuries or death, each package must contain at least $15,000. If more than one person is hurt, the package must have $30,000 to cover everyone’s injuries or funeral expenses. $25,000 must be designated toward property damages under the property damage liability portion.