Lapsed Auto Insurance Carries Harsh Penalties in Louisiana

In October 2015, over one million letters were sent out to Louisiana residents with a goal to collect more than $400 million in fines for lapsed insurance. It was estimated that more than 550,000 drivers in the state were without insurance.

These letters were sent by the Office of Motor Vehicles, which gives drivers 60 days to get auto insurance coverage. Fines for those that do not comply with the letter’s demands are up to $656. The issue, however, is most of these drivers were improperly accused. In fact, a large majority of those drivers had sold vehicles or were registered as drivers (and insured) in other states.

The issue surrounding these letters and an abrupt attempt to collect fines has outraged numerous Louisiana residents; some of them asking how they could be liable for insuring a vehicle they do not even own. Those that were inappropriately accused lament that it has taken weeks to fix the issue.

As of November 4th, the Louisiana State Police had cleared more than 41,000 of the cases that received letters and collected more than $6 million in fines.

The Importance of Having Proper Louisiana Insurance

While there are a handful of those that were improperly accused, a large number of those letters sent to the state’s residents were legitimate. Some had no insurance because they could not afford it; others felt there was no need. Regardless of the reasons to not have insurance, there are even bigger reasons to make sure your vehicle is properly covered:

  • You pay small now and save big later. By paying a little bit each month, you are actually saving yourself thousands in the end. With millions of car accidents occurring each year in the United States, having no insurance could cost you not only fines, but thousands in property damage, vehicle repairs, medical payments, and more.
  • Accidents are handled faster. With an insurer, your car accident is handled quicker because you have a dedicated claims adjuster working to do so. The adjuster can help you find a repair shop, get compensation from the other party (if they are responsible), and resolve the issue so that you can get back on the road.
  • You have peace of mind while driving. Driving without insurance means you are at constant risk for fines and liabilities. By being insured, you can drive with confidence and not worry about having to pay in monetary terms for the risky behavior of other drivers.
  • Car insurance helps with medical payments too. If you are injured, your car insurance can help with medical costs associated with that accident as well, which is important when health insurance is reluctant to pick up the tab.
  • It is the law. Bottom line is, without car insurance, you are breaking the law in Louisiana! Even lapsed insurance coverage or a few months without coverage is considered a violation.

If you live in Louisiana, do not risk fines and liability. Instead, let the Nowell Agency help you find affordable Louisiana insurance you need to cover your vehicle, passengers and more. Call us at 888-675-1842 for Louisiana-based insurance quotes. You can also request a quote online.