Vehicles Get Impounded For A Lack Of Louisiana Car Insurance

Failure to maintain Louisiana car insurance can leave motorists stranded on the side of the road. The law requires that all registered vehicle owners are financially responsible for any debts caused during the operation of their car. Residents have no option but to purchase a policy through a licensed Louisiana car insurance agent

Proof of Financial Responsibility

Motorists are given a binder they must carry in the vehicle until they receive permanent Louisiana car insurance cards. The binder may be used to show proof of compliance to the Department of Motor Vehicles when the vehicle is registered. The DMV will also receive electronic documentation from the company verifying the policy. Anytime there is a lapse in coverage, if there is a missed payment or a cancellation, a letter will be sent informing the state of the lapse. Motorists will receive a notice and be given ten business days to provide proof of Louisiana car insurance or there will be a flag put on the driver's license and car registration.

When stopped by a law enforcement officer, or in a car accident, the Louisiana car insurance card must be available to the officer. If the policy is no longer active the license plates will be removed, and the car will be towed and impounded at the owner's expense.

Getting Things Back to Normal

Quick action is required once there is a flag for a Louisiana car insurance violation. If the auto has been impounded fees are charged daily. The fines required to get a registration renewed also go up with time. In order to have the vehicle released all fines and fees must be paid. There will also be the fines associated with the suspension of the driving license. The time is directly related to how long the car has been without proper Louisiana car insurance. One to thirty days carries a fine of $50. Thirty-one to ninety days has a fine of $125 and motorists can expect a fine of $225 for reinstatement after ninety days.

Minimum Requirements

Motorists wishing to keep their vehicles from being impounded must keep at least the minimum Louisiana car insurance coverage. This consists of $15,000 for bodily injury or death for one person with a maximum of $30,000 for each accident. This type of coverage will not pay any bills for the driver that is found to be at fault in the accident.

If there is still a loan on the vehicle the lien-holder may mandate that there is also collision coverage as part of their Louisiana car insurance. This will pay to have the car fixed even if the owner caused the crash. This way the car will keep its worth and the lender will not be at risk of a large loss in the event they end up with it again. Owners may also wish to carry personal injury protection to take care of their own medical bills.

Owning a motor vehicle takes a lot of responsibility. The number of people that are not financially responsible has gotten out of hand, so the state has stepped in and set up the laws and the fines for breaking them. Louisiana car insurance may seem expensive, but the cost is small compared to the fines for not keeping it current.

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