Louisiana DMV fees for lapsed insurance are $125 if your insurance lapsed for 11 to 30 days, $275 if it lapsed for 31 to 90 days, and $525 for more than 90 days without insurance. The fees are subject to a cap of $850 if drivers are paying for multiple insurance cancellations in one day ($250 for those aged 65 and older). In addition, drivers are charged a $25 administrative fee.
If your driver’s license or vehicle registration has been flagged for not having insurance, you have 10 days to present proof of insurance to the Louisiana Office of Motor Vehicles (OMV). You can also show a total loss statement, bill of sale or lease return, proof of repossession or salvage, or an out-of-state registration. Any of these forms demonstrate that your car insurance lapsed for a valid reason, like no longer owning the car in question. After the 10-day period, fines begin to accumulate.
How to Pay Louisiana DMV Fees for Lapsed Insurance
To pay the Louisiana DMV fees for lapsed insurance, drivers can mail a money order, cashier’s check, or certified check to the Louisiana Office of Motor Vehicles. To pay with a debit or credit card, drivers can also call (225) 925-6146 and choose option 1, although card payments over the phone will incur a $5 convenience fee. Payment plans are available as well.
It’s important to note that even if you pay off the fines, you still need to provide proof of current insurance or evidence that you no longer own or drive the car.
Why You Shouldn’t Ignore Insurance Lapse Fees
Ignoring insurance lapse fees is not a good solution. Debts to a state government agency are especially persistent and will follow you, since outstanding fees can be referred to the U.S. Department of the Treasury and subtracted from your federal tax refund. Besides fees, driving without insurance in Louisiana can result in your car being impounded and/or your registration being suspended.
To avoid the hassle and expense of insurance lapse fees, pay any fees immediately, since they’re calculated based on how long you go without insurance. If you move to a new state or stop driving your car, return your Louisiana license plates to the OMV. And if you’re currently uninsured, you can compare options for cheap car insurance in Louisiana.
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