These high penalties have caused some residents of the state to call this new regulation unfair.
A new insurance law has now gone into effect in Louisiana, which is designed to deter drivers from heading out onto the road while uninsured, but some residents of the state are now calling it unfair, as the penalties associated with it are quite high.
Previously, the fine for driving without any auto insurance had been a small, one-time fee.
However, drivers are now discovering that this insurance law means business. The fee now begins at $100 and continues to grow as long as the driver remains uninsured and does not address this issue. The state now allows this fine for driving without auto insurance to rise as high as $850, and could be subject to an additional administration fee when paid, that could drive that total even higher.
The Louisiana State Police have said that this new insurance law is fair, as coverage is required for drivers.
They are hoping that the higher fees will act as a deterrent so that the penalties will make it worthwhile to actually purchase the car insurance policy, which is legally required to use the roads in the state.
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According to Trooper Greg Marchand from the Louisiana State Police, “It hopefully will be a deterrent. So if they know that the penalties are higher, they’re not going to have that $25 reinstatement fee after driving with no insurance six or seven months to a year.”
While many of the people in the state do agree that the intentions of the insurance law are good, and it is necessary to do something in order to encourage people to purchase the required policies and keep the uninsured off the roads, the current fines and administrative fees may not be the answer. Some have stated that it would be better to try to work with the people who are actually making an effort to do the right thing and to correct the mistakes that they have made in the past so that they aren’t strapped with an expense that makes it that much harder to be able to afford the mandatory coverage.