What is compulsory motor vehicle insurance?

Most states require that, before being allowed to operate a motor vehicle on its roads, a driver purchase a certain amount of motor vehicle insurance. This is commonly known as compulsory motor vehicle insurance or compulsory MVI.

Louisiana is no different.

Louisiana Revised Statutes Title 32, Section 861 requires that every “self-propelled motor vehicle” registered in Louisiana maintain a policy of motor vehicle liability insurance with limits as defined by “R.S. 32:900(B)(2) or (M)”. Failure to maintain the required insurance policy can result in the revocation of the vehicle’s registration, impounding of the vehicle, and cancellation of the vehicle’s plates, fines and imprisonment.

Louisiana Revised Statutes Title 32, Section 900, establishes the required minimum limits for insurance in Louisiana. A liability insurance policy in Louisiana must include a minimum of $15,000 in bodily injury or death limits per person, with a total $30,000 limit per accident. Each policy must also include $25,000 in damage or destruction of property limits.

Any individual operating a motor vehicle without compulsory motor vehicle insurance who is involved in an accident is prohibited from recovering the first $15,000 of any bodily injury damages sustained in the accident and the first $25,000 of any property damages sustained in the accident, regardless of fault. (La. R.S. 32:866).

If you or someone you know has been involved in an accident and has questions about what to do next, give us a call at (318) 459-9111.