Louisiana passes new auto insurance law

Louisiana Auto Insurance rates

Louisiana Auto Insurance

New law expands the authority of law enforcement in the state

A new law has passed in Louisiana, giving the state’s law enforcement expanded authority over vehicles that may not be insured. The state’s auto insurance laws have been in flux recently, with lawmakers considering several reforms or new legislation that would help  solve some of the issues with the state’s ongoing struggle with insurance fraud and the growing lack of auto insurance coverage. The legislation, House Bill 1053, was signed into law this week by Governor Bobby Jindal. State officials believe the new law will help law enforcement ensure that drivers are protected while taking to the state’s roadways.

Former auto insurance law considered ineffective by state Legislature

The new auto insurance law is meant to replace one that some legislators have deemed “unworkable.” This law forbade law enforcement officers from towing vehicles whose owners could not produce proof of insurance. Instead, officers were able to impound these vehicles for a certain amount of time. This practice was considered ineffective because there was no telling how often a driver had been issued citations due to lack of auto insurance coverage. The new law seeks to remedy this problem by providing law enforcement officers with more authority over the matter.

Uninsured vehicles to be towed on first offense

According to the new auto insurance law, officers will now be able to tow vehicles if drivers cannot show proof of insurance coverage on their first offense. State officials suggests that more than 850,000 vehicles are currently uninsured in Louisiana, many of which are likely to have been targeted by citation in the past but were allowed to stay on the road due to faulty laws.

Law expected to benefit the state and its insurance companies

Legislators expect that the new auto insurance law will have a positive impact on the state as a whole. The law may encourage drivers to purchase auto insurance policies in order to ensure that their vehicles are compliant with the law and those without auto insurance coverage are not expected to avoid law enforcement for long.

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