Louisiana drivers will quickly face stiffer penalties for driving with out vehicle insurance following Gov. Bobby Jindal signed Act 641 into law on Thursday.
Starting July 1, owners of uninsured cars will have their automobiles impounded and their license plates and registration revoked. The new law also increases the reinstatement charge for these products and establishes a separate minimum $ 75 fine for driving uninsured.
The following table compares the old and new reinstatement costs, which are based on the length of time the car was uninsured:
Period that vehicle was uninsured
|
New reinstatement charge
(efficient July 1)
|
Earlier charge
|
1-30 days
|
$ 100
|
$ 25
|
31-90 days
|
$ 250
|
$ 100
|
91 days or much more
|
$ 500
|
$ 200
|
According to a legislative fiscal report, the new costs set below the law are anticipated to raise $ 53 million in additional revenue.
$ 53M in Income to Go to Verification Method, Public Safety Salaries
Element of Act 641 uses the charge hike to fund an auto insurance verification technique.
The program will use a database containing info about Louisiana auto insurance policies and drivers. It will permit authorities to check regardless of whether drivers have auto policies and verify no matter whether or not they have had lapses in coverage. The system will contain “real-time” data for police to reference throughout traffic stops.
Some of the improved fees that are collected will go to an “Insurance Verification System Fund” that would back the “creation and maintenance” of such a database.
Uninsured motorists have faced clampdowns in other states with similar databases, which includes Maryland, Texas, Montana, and Rhode Island.
Other components of the charge hikes are marked to improve law enforcement and public security salaries and applications.
Louisiana Law to Increase Costs for Uninsured Drivers Next Month
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