Louisiana requires all state residents who are completing certain driver’s license transactions or trying to register a vehicle to provide proof of financial responsibility.

Ways to Establish Financial Responsibility

When you have financial responsibility, it means you’re able to handle the cost of any damages your vehicle might cause in an accident. In this state, you can establish financial responsibility when you purchase liability coverage from a carrier licensed to sell auto insurance in Louisiana.

Louisiana Liability Insurance Requirements for Private Passenger Vehicles

Before you can register your vehicle or complete certain driver’s license transactions, you must show proof of an insurance policy that at least includes the following amounts of liability coverage:

• $15,000 per person for bodily injury or death

• $30,000 per accident for bodily injury or death

• $25,000 for property damage

Many vehicle owners opt to purchase additional types of coverage to make sure they―and their vehicles―are as financially protected as possible. Talk with your carrier about the extra coverage available before you finalize your insurance purchase.

Electronic Reporting

Insurance carriers must report to the Department of Public Safety and Corrections’ Office of Motor Vehicles (OMV) information about your liability coverage. Such information includes notices whenever you purchase, make changes to, or cancel your liability insurance.

Proof of Insurance and Financial Responsibility

Your road test examiner, an OMV employee, a law enforcement officer―you can expect a variety of people to ask for proof of insurance for your vehicle. Be prepared with one of the following:

• Your insurance policy or binder.

• The I.D. card your carrier or agent issues you.

• Your insurance policy’s declarations page.

• A written statement from your carrier or agent. The letter must be on company letterhead, include all of your vehicle's information, and have your insurance agent’s signature.

Penalties for Failure to Maintain Financial Responsibility

Law Enforcement

If a law enforcement officer catches you with no proof of insurance, he can issue you a violation, take your license plates, and impound your vehicle.

You will then have three days to show proof of insurance at the OMV office listed on your violation; if you can’t, you will not get your license plates back and you’ll have to register your vehicle again.

Cancelled Insurance

If your carrier cancels your liability coverage, you face a “flag” on your driver’s license and registration suspension.

To remove the flag and reinstate your license, you must show proof of insurance effective within 10 days of the insurance cancellation date or show proof that the vehicle was sold, traded, junked, or moved to another state.

If you can’t show proof of insurance within that time period, you face the following reinstatement fees:

• 11-30 days: $50

• 31-90 days: $125

• 91 or more days: $225

If you cancel your insurance, you must submit your license plates to your local OMV office 10 days prior to the cancellation as well as submit a Statement of Non-Use to:

• Office of Motor Vehicles

• P.O. Box 64886

• Baton Rouge, LA 70896

Keep in mind penalties and fees may vary depending on your situation, and it’s best to contact the nearest OMV office equipped to handle reinstatements for instructions specific to your situation.