Louisiana law requires every driver to carry car insurance. This rule protects everyone who travels on the road. That is to say, insurance helps injured people get fair payment after a crash. For many drivers, this means navigating the personal injury claims process after an accident.
Louisiana’s Mandatory Insurance Requirements
Firstly, Louisiana requires liability insurance on all registered vehicles. This insurance must meet the state minimum limits. In Louisiana, the minimum auto liability coverage drivers must have is $15,000 bodily injury per person, $30,000 bodily injury per accident, and $25,000 property damage per accident. To clarify, this insurance will pay for injuries and property damage you cause.
Why Insurance Matters After a Crash
Firstly, insurance companies handle a lot of claims. That speeds up payments for medical care and repairs. It also helps injured drivers get needed treatment faster, which is often critical in Louisiana personal injury cases following a car accident. Consequently, insurance protects drivers from lawsuits and large judgments. In the same vein, insurance can reduce arguments about fault and damages. But with larger claims and policies, that is not always the case. In short, while dealing with insurance companies can be difficult – it actually makes the claims process smoother for everyone.
Louisiana’s “No Pay/No Play” Law (Updated for 2025)
Louisiana uses a “no pay/no play” rule to stop uninsured driving. This rule appears in Louisiana Revised Statute 32:866. Lawmakers revised the rule effective August 1, 2025. The change greatly increases the penalty for uninsured drivers. As a result, uninsured drivers now face serious financial risk after any wreck.
Firstly, the revised law blocks an uninsured owner who is injured from claiming the first $100,000 in injury damages. Secondly, it blocks the first $100,000 in property damages.
The penalty applies even when the uninsured driver is not at fault. Consequently, this rule creates huge financial risk for uninsured families. In short, because of these changes, many victims have lost much of their claim (maybe even all) before it even starts. This can significantly affect a person’s ability to pursue a personal injury claim after a car accident.
Exceptions to the Rule
However, the law includes several key exceptions. Firstly, the rule does not apply to a passenger unless they own the uninsured vehicle. In addition, the rule does not apply if the uninsured vehicle was legally parked. Next, the rule does not apply if the at-fault driver is convicted of DWI. It also does not apply if the at-fault driver intentionally caused the crash. Moreover, it does not apply if the at-fault driver flees the scene. Likewise, it does not apply if the at-fault driver was committing a felony. Finally, it does not apply to drivers from another state if their state did not require them to have liability insurance at the time of the wreck.
Why This Change Matters
The revised law increases the danger for uninsured drivers. Further, uninsured drivers hurt in a crash may face large medical bills and repair costs. Consequently, many families may lose needed compensation after a crash. This change shows why active insurance coverage is crucial.
To sum up, the state now enforces stronger penalties for uninsured driving. Call Matt Rogenes, if you have questions about these new laws and how they might impact you.
