Frequently Asked Questions Regarding Louisiana Insurance Laws

speeding_ticketWhat happens if I don’t carry insurance?

  • Driving without auto insurance will result in fines, suspended license, and the towing of your vehicle if caught on the road without the minimum insurance coverage of 10/20/10, which will change January 1, 15/30/15.
  • Louisiana Insurance Law, “No-Pay No-Play” disqualifies anyone who does not carry mandatory liability from receiving claim payments for bodily injuries and property damages in an automobile accident. By not carrying liability insurance you in turn are not covered by anyone else’s insurance.

What will I need for proof of insurance?

  • Your insurance company is required to issue you an auto insurance ID Card on each vehicle they insure. You must carry this in your vehicle at all times when vehicle is driven. Other states require the same and as you travel from state to state your minimum limits of liability goes up with each state requirements at no additional cost.

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Why do I have a flag on my license?

  • Usually it is the result of a lapse in coverage, cancelled policy or vehicle you removed from your insurance. Always notify DMV before deleting a vehicle, to avoid a flag on your license. Either bring DMV the plates or a bill of sale (or both) before deleting a vehicle or canceling a policy.
  • All cancellations or deleted vehicles are reported by the insurance company directly to DMV, within ten days without explanation. By keeping DMV up-to-date, you will avoid future flags & fines.

How do I remove a flag?

  • If the vehicle was sold, traded, junked, totaled, returned to lender, repossessed, or registered out-of-state, provide proof within ten days to DMV.
  • Flag due to lapse needs proof of insurance brought to DMV in order for them to clear cancellation. Usually there is a fine that increases based on number of lapses that have occurred on vehicle.
  • To avoid a flag on a vehicle that is not-in-use, but still in your possession, you may file a Non-Use Affidavit and Turn In Your Plate with the DMV before you delete it from your insurance policy.