Louisiana Auto Insurance Laws
Auto Insurance Laws and Trends in LA
Louisiana has implemented the tort system of insurance. This means that whichever party is deemed to be at fault for an accident is responsible for medical expenses and property damages.
What are the basic auto insurance requirements in Louisiana?
All drivers in the state of Louisiana must carry minimum liability limits of:
- Bodily injury: $15,000 per person
- Bodily injury: $30,000 per accident
- Property damage: $25,000 per accident
In Louisiana, there are some exceptions to the requirements listed above. Parade vehicles, vehicles owned by the state of Louisiana, and city buses are not required to carry the minimum limits.
Statistics and trends for Louisiana auto insurance
In 2006, Louisiana was reported to have the 3rd highest insurance premiums in the country. This rate increased from the previous year by 1.5%.
Auto insurance fraud covers any act (no matter how much money is involved) that intentionally tries to obtain money from an insurance company. In Louisiana, auto insurance fraud is on the rise. Because of this, the Louisiana Auto Theft and Insurance Fraud Prevention Authority (LATIFPA) was created. Their aim is to prevent auto theft, auto insurance fraud, and other crimes related to automobiles. In approximately 21-36% of all claims are suspected to be fraudulent. In their latest study, LATIFPA has compiled a list of fraud crimes that the public considers acceptable:
% |
Fraud action |
40 |
Increasing claim amount to cover the deductible |
36 |
Increasing claim amount to cover the premium |
29 |
Include defective parts in a claim |
20 |
List adult driver as primary driver when in actuality the primary driver is underage |
14 |
Leaving out accidents or claims from insurance application |
7 |
Pretending a hit-and-run occurred to submit a claim |
6 |
Abandon a car and report it stolen |
Besides these, some individuals or groups use sophisticated methods to extract money from insurance companies. They try to fake or create accidents to obtain payouts from insurance companies.