Louisiana has relatively low minimum requirements of $15,000 per person ($30,000 per accident) for bodily injury liability insurance, but that doesn't help keep its car insurance rates down.
Louisiana is among the most expensive places in the U.S. for auto insurance. Generous claim settlements are to blame, experts say. The state insurance commissioner says that the New Orleans metro area is the worst culprit, with insurance settlements 40 percent higher than the statewide average.
Natural disasters, such as hurricanes, tropical storms and tornados, also cause havoc and claims. If you want your car covered for damage resulting from a natural event, then you'll need to purchase comprehensive coverage for your vehicle.
Cheaper uninsured motorist option: Optional uninsured motorist (UM) and underinsured motorist (UIM) coverage are offered together, but Louisiana auto insurance companies also offer drivers the option of uninsured motorist economic-only coverage. For a lower premium, this type of UM coverage will only cover the actual costs of injuries you sustain due to an uninsured motorist. It doesn't include compensation for other items, such as pain and suffering.
No pay, no play law: Besides having your car's license plates removed, vehicle impounded, and being fined for driving without insurance, Louisiana also limits your ability to sue if you were driving uninsured and in an accident. The state's no pay, no play law prohibits uninsured motorists from collecting for the first $15,000 in bodily injuries and first $25,000 in property damage, regardless of who was at fault in the accident.
Electronic proof of insurance is accepted here: Drivers can use a traditional paper insurance card or electronic insurance data to provide proof of auto liability insurance.