Navigating Louisiana’s Automobile Liability Insurance Minimum Limits
There are different types of automobile insurance coverages. Liability coverage is the amount of money the insurance company will pay if its insured is at fault for causing someone else’s injuries in an auto accident. We often are asked the question, “What are the minimum liability coverage limits in Louisiana?” The answer may surprise you.
The minimum liability insurance coverage limits in Louisiana are “15/30/25.” That’s a shorthand way of saying that to legally drive in Louisiana, the insurance policy on vehicles owned by an insured must, at a minimum, cover the payment of damages to other persons injured in an auto accident caused by the insured’s fault, as follows:
$15,000 per person for bodily injury;
$30,000 per accident for bodily injury (total for bodily injury to all persons involved in the accident); and
$25,000 per accident for property damage.
Note that these are the minimum liability coverage limits. These numbers do not mean, for example, that if you are hurt in an accident and sue the at-fault driver’s liability insurer, you will inevitably recover the entire $15,000 bodily injury limit. You can only recover from the insurer the amount of damages you are legally able to prove, up to the policy limit of $15,000.
Other than Pennsylvania (which has the same bodily injury limits as Louisiana) and Florida (which generally does not require liability coverage for bodily injury), Louisiana’s current 15/30 minimum bodily injury limits are the lowest in the nation. Many states require at least 25/50 bodily injury coverage limits, and other states have even higher minimum limits.
Just how low is a $15,000 per-person bodily injury limit? Consider that hospitals may have a minimum charge of $1,000 to $2,000 just to be seen at the emergency room after an auto accident. We have assisted clients for whom the ER bill after an accident is $4,000, $5,000, or more, even for soft-tissue injuries. Considering that additional medical treatment may be needed, the value of pain and suffering, the amounts of other damages and expenses, and that catastrophic injuries are even more costly, the smallness of the $15,000 per-person bodily injury limit becomes apparent.
An important ramification of being at the bottom of the 50-state list in terms of minimum liability coverage is that if several vehicles or multiple injured persons were involved in the accident, multiple folks likely will compete for the $30,000-per-accident bodily injury limit. So in many situations, it is advisable to consult an attorney early in the claim process to assist in maneuvering to better the prospect of receiving fair compensation from the insurer.
Another practical pointer: check the liability coverage you currently have in place. While we all hope we’ll never need it, we’re all human and capable of negligence. In the event you are found at fault for an accident, if you have a 15/30 policy, consider the risk that your insurer will pay out $15,000 that is proven due and payable, but leave you exposed to a potential excess-value judgment above your policy limit. Consider spending a little extra to purchase 25/50 coverage. Download your policy declarations page (known colloquially as a “dec page”) from your insurer’s website and look at the actual numbers describing your current coverages. Our clients sometimes have been led to believe they have “full coverage,” only for us to show them that their insurer is only providing minimum liability (15/30) coverage.
Lastly, we all hope we’ll never be injured and need to pursue recovery through insurance. But it happens every day. Consider the benefits of purchasing uninsured/underinsured (UM) motorist coverage in the event you are hit by a driver with no insurance or a 15/30 policy that wouldn’t fully compensate you for your injuries. To learn more about UM coverage, check out our prior post by clicking here.