8.2 Louisiana Auto Insurance Law & PAP Endorsements: Compulsory Limits, No Pay No Play, UM & Named Driver Exclusions
Key Takeaways
- Louisiana’s compulsory motor vehicle liability limits are $15,000 per person and $30,000 per accident for bodily injury, plus $25,000 for property damage (R.S. 32:900(B)(2)).
- Since Acts 2025, No. 16, an uninsured owner or operator may not recover the first $100,000 of bodily injury or the first $100,000 of property damage from an accident (R.S. 32:866(A)(1)).
- The No Pay No Play bar does not apply if the other driver is convicted of or pleads nolo contendere to DWI, intentionally causes the accident, flees the scene, or is committing a felony (R.S. 32:866(A)(3)).
- Louisiana UM coverage equals bodily injury liability limits unless the named insured rejects it, selects lower limits, or selects economic-only coverage on the commissioner’s form (R.S. 22:1295(1)(a)).
- When a named excluded driver operates with express permission, the insurer owes no coverage or defense, and the named insured is solidarily liable, generally up to the minimum limits (R.S. 22:1295.1).
Compulsory Security and Minimum Limits
Every self-propelled motor vehicle registered in Louisiana must have compulsory liability security (R.S. 32:861): an auto liability policy, a motor vehicle liability bond, a cash or securities deposit with the state treasurer, or self-insurance. A motor vehicle liability policy must cover the named insured and permissive users in the United States and Canada, with limits of at least (R.S. 32:900(B)(2)):
| Coverage | Minimum limit |
|---|---|
| Bodily injury or death, one person, one accident | $15,000 |
| Bodily injury or death, two or more persons, one accident (subject to the per-person limit) | $30,000 |
| Property damage, one accident | $25,000 |
Louisiana is a fault-based state. Liability follows negligence under Civil Code art. 2315, and recovery is reduced by the claimant's comparative fault. Since January 1, 2026, Civil Code art. 2323 bars recovery for a claimant 51 percent or more at fault (Acts 2025, No. 15).
"No Pay, No Play" (R.S. 32:866, as amended by Acts 2025, No. 16)
The bar: an owner or operator who fails to own or maintain compulsory liability security may not recover the first $100,000 of bodily injury or the first $100,000 of property damage on any claim arising from a motor vehicle accident. Before the 2025 amendment, the thresholds were $15,000 and $25,000, so check the accident date on older files.
When the bar does not apply:
- The other driver is cited for DWI under R.S. 14:98 from the accident and is later convicted of it or pleads nolo contendere (A)(3)(a)(i).
- The other driver intentionally causes the accident (ii).
- The other driver flees the scene (iii).
- The other driver is acting in furtherance of a felony at the time (iv).
- The uninsured vehicle was not being operated and was not in violation of Chapter 1 of Title 32 (A)(3)(b). The Part also does not apply to a legally parked vehicle (H).
- Passengers may still recover for injuries caused by another's negligence, unless the passenger owns the uninsured vehicle (E).
Other rules:
- The at-fault person may raise the limitation as an affirmative defense (B).
- An uninsured owner who sues and is awarded $100,000 or less in bodily injury damages pays all court costs of all parties (C).
- Insurers keep subrogation rights for sums above the first $100,000 of bodily injury and property damage (F).
- Buying or changing coverage after the accident does not restore recovery, defeat the defense or avoid court costs. Newly acquired vehicles added under policy terms, and reinstatements during a policy's premium grace period, are exceptions (G).
| Example (accident after August 1, 2025) | Result |
|---|---|
| Uninsured driver's car has $22,000 of damage from an insured driver's negligence | Nothing recoverable; the first $100,000 of property damage is barred |
| Uninsured driver has $140,000 of bodily injury damages; the at-fault driver fled | The bar does not apply; recovery is not reduced by the $100,000 |
| Uninsured owner's car was legally parked and unoccupied when struck | The bar does not apply |
| Passenger, not the owner, in an uninsured car is injured | May assert a claim; the bar does not apply to passengers who do not own the vehicle |
Uninsured and Underinsured Motorist Coverage (R.S. 22:1295)
Default rule: an auto liability policy delivered in Louisiana must include UM coverage in limits not less than the policy's bodily injury liability limits, unless any named insured rejects UM, selects lower limits, or selects economic-only UM. UM limits may not be below the R.S. 32:900 minimums unless economic-only coverage is chosen.
The selection form (R.S. 22:1295(1)(a)(ii)):
- The choice must be made only on a form prescribed by the commissioner, provided by the insurer and signed by the named insured or legal representative.
- A properly completed and signed form creates a rebuttable presumption that the insured knowingly rejected coverage, selected lower limits or chose economic-only coverage.
- If the form is signed but not properly completed, there is no UM, or only the modified UM, if it is determined the insured intended to reject or modify coverage.
- The insurer must verify the form is properly completed, keep a copy with the policy, and may not delegate keeping the form to the producer.
- The form stays valid for the life of the policy, including renewals, reinstatements, substitute and amended policies with the same insurer or affiliates. The insured may change the selection at any time with a new form.
- Commercial auto policies: if no selection form is completed and no UM premium is paid, the policy is presumed to have no UM (R.S. 22:1295(7)).
Coverage features:
| Feature | Rule |
|---|---|
| Economic-only UM | Lower-premium option excluding all noneconomic loss (pain, suffering, inconvenience, mental anguish) |
| Uninsured vehicle includes | A vehicle whose liability insurer is insolvent, and an underinsured vehicle whose liability coverage is less than the damages |
| Stacking | Limits do not increase for multiple vehicles or policies. For an injured occupant of a vehicle not owned by the injured person, resident spouse or resident relative, the UM on the occupied vehicle is primary, and the person may recover excess from only one other UM coverage. |
| Owned but not listed vehicle | UM does not cover an insured injured while occupying a vehicle the insured owns that is not described in the policy (unless newly acquired or a replacement vehicle), except under policies that do not describe specific vehicles |
| No physical contact (hit and run) | Covered if the injured party proves, through an independent and disinterested witness, that another driver's actions caused the injury |
| UM property damage | For a vehicle without collision coverage, on written request and unless UM was rejected: the lesser of ACV or the minimum property damage limit, with a $250 deductible. It requires physical contact or an independent witness and excludes loss of use and amounts payable under other property insurance. |
| Arbitration | Optional for the insured; it may not deprive the insured of the right to sue |
| Proof of uninsured status | Sworn affidavits of the owner and operator, or of a Department of Public Safety and Corrections official, are prima facie proof and shift the burden to the UM insurer |
| Subrogation | The UM insurer is subrogated, to the extent of payment, to recoveries against responsible parties |
Named Excluded Drivers (R.S. 32:900(L) and 22:1295.1)
Louisiana allows a policy to exclude a named operator. When that excluded operator drives with the express permission of the named insured:
- the insurer is not liable and owes no defense under any coverage of the policy;
- the named insured and the operator are solidarily liable for the damage; and
- the named insured's liability is capped at the R.S. 32:900 minimum limits. The cap does not apply when the named insured is the operator's parent or tutor, or is otherwise vicariously liable or responsible for the operator's acts.
ISO's Louisiana form for this exclusion is listed on the Series 204 outline as PP 13 43, Named Driver Exclusion – Louisiana.
Personal Auto Cancellation Limits (R.S. 22:1266)
For a personal auto "policy" as defined in R.S. 22:1266, generally private passenger vehicles for an individual or spouses with no more than four autos, once coverage has been in effect 60 days or on a renewal, a cancellation notice is effective only for:
- nonpayment of premium;
- suspension or revocation of the driver's license or registration of the named insured or of a household member or customary operator, during the policy period or, for a renewal, the policy period or 180 days before its effective date;
- fraud or material misrepresentation in presenting a claim; or
- nonreceipt of an application after a valid binder was issued.
Notice must be sent by certified mail or delivered at least 60 days before the cancellation date. The period was 30 days until Acts 2025, No. 182 took effect on July 1, 2026. Cancellation for nonpayment requires at least 10 days' notice with the reason, and the insured may request the reason within six months. An insurer may not cancel or refuse to renew solely because of age (R.S. 22:1266(C)).
Louisiana PAP Endorsements on the Series 204 Outline
| Endorsement | What it does |
|---|---|
| PP 01 95 – Amendment of Policy Provisions (Louisiana) | The state amendatory endorsement that changes national PAP wording to comply with Louisiana law. Always read it before applying the base form's termination, legal action or other conditions. |
| PP 03 06 – Extended Non-Owned Coverage | Broadens coverage for a named individual using non-owned vehicles that the base PAP would exclude, especially vehicles furnished or available for the named individual's regular use, such as a company car |
| PP 03 23 – Miscellaneous Type Vehicle | Extends PAP coverages to miscellaneous type vehicles listed in the schedule, such as motorcycles, motor homes, golf carts and other off-road vehicles, which the base PAP definition of covered auto does not include |
| PP 03 34 – Joint Ownership Coverage | Adjusts the policy's definitions of "you" and "family member" when a vehicle is jointly owned by resident relatives who are not spouses, or by unrelated residents of the same household |
| PP 13 43 – Named Driver Exclusion (Louisiana) | Excludes the scheduled operator, with the statutory consequences above |
After Acts 2025, No. 16, how much can an uninsured owner-operator not recover after an accident caused by an insured motorist, absent an exception?
In which situation does the Louisiana No Pay No Play limitation not apply to an uninsured driver’s claim?
A named insured signed Louisiana’s UM selection form rejecting UM, but the form was not properly completed. Under the current R.S. 22:1295(1)(a)(ii), what is the result?
A named insured lets his named excluded adult nephew, who is not his ward, drive his car with express permission, and the nephew causes a crash. What does R.S. 22:1295.1 provide?