Louisiana car insurance: minimums, "no pay, no play" and why it costs more

No pay, no play: what uninsured drivers give up

Louisiana's no pay, no play law (Revised Statutes 32:866) adds a cost to going uninsured that goes beyond fines: it shrinks what you can collect after a crash. If you own or drive a car without the required coverage, you cannot recover the first $100,000 of bodily injury damages or the first $100,000 of property damage from the driver who hit you. The law was most recently amended by Acts 2025, No. 16.

For example, if an insured driver runs a red light and causes $30,000 of damage to your uninsured car, the limit on recovery is higher than your whole claim, so you collect nothing for the car. The other driver's insurer can raise the rule as a defense.

The limit does not apply if the other driver:

• is cited for and convicted of (or pleads no contest to) driving while intoxicated as a result of the crash;
• causes the crash on purpose;
• flees the scene; or
• was committing a felony at the time.

Passengers in an uninsured car can still claim, unless they own that car. The rule also does not apply to a car that was legally parked. And if an uninsured owner sues and is awarded no more than $100,000 for injuries, that owner pays all court costs. Buying a policy after the crash does not undo any of this.

UM coverage: included unless you sign the Commissioner's form

Louisiana uninsured motorist (UM) coverage is built into a policy at your bodily injury limits. To reject it, choose lower limits or pick economic-only coverage, you must use the form approved by the Commissioner of Insurance. Economic-only UM pays for things like medical bills and lost wages but not for pain and suffering.

In Louisiana, UM also covers you when the at-fault driver has insurance but not enough to pay your damages, so it doubles as underinsured coverage. The Insurance Research Council estimates 11.7% of Louisiana drivers were uninsured in 2023, below the national 15.4%. With a per-person minimum of $15,000, though, an insured at-fault driver may still have far less coverage than a serious injury costs. See uninsured motorist coverage for how to weigh UM limits.

The state minimum and its gaps

Louisiana's bodily injury minimums are lower than the requirements in neighboring Texas, which requires $30,000 per person.

For example, if you cause a crash that injures one person whose hospital bills and lost wages reach $40,000, a policy at the Louisiana minimum pays $15,000 for that person, and the injured person can pursue you for the rest. Our liability guide explains split limits and how to choose higher ones.

Stopped without proof: impound and reinstatement fees

Louisiana officers check for proof of insurance at stops, checkpoints and crash scenes, and can verify it electronically. If you cannot show proof, the car can be impounded and you receive a notice of noncompliance. In some cases, such as when a young child is in the car, the officer takes the license plate instead and gives you a temporary sticker.

You then have 3 calendar days (not counting weekends and legal holidays) to show the Office of Motor Vehicles that the car was insured at the time. If it was, you get your plate back at no charge. If it was not, the registration stays suspended until you prove coverage, and you owe reinstatement fees: $100 for a first offense, $250 for a second and $500 for later offenses. Phone images of insurance cards are accepted as proof.

Why Louisiana car insurance costs more

Both figures are above the national averages. Insurers set prices from the claims they expect to pay, and Louisiana's crash data are part of that picture. IIHS counted 752 traffic deaths in 2024, a rate of 16.4 per 100,000 people (US: 11.5 per 100,000 people) and 1.36 per 100 million miles (US: 1.19 per 100 million miles), both above the national rates.

Ways to bring a quote down include shopping at renewal, car insurance discounts and a higher deductible. Cars in coastal areas also face storm and flood risk, which only comprehensive coverage pays for; read about hail, flood and hurricane damage.

Getting help in Louisiana

For registration, plates and insurance compliance, contact the Louisiana Office of Motor Vehicles. We could not confirm contact details for the Louisiana Department of Insurance from its website, so we do not list them here. For a complaint about an insurer, look up the Department through Louisiana's official state website. Rules in neighboring Arkansas and Mississippi differ, so check them if you are moving.