Get car insurance, say state officials

More than one million people in Louisiana got letters demanding they either prove they are insured or face the music

Insurance News

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The State of Louisiana gave insurance agents a shot in the arm this month when it sent 1.2 million letters to motorists who don’t carry the required auto insurance, telling them in no uncertain terms that they need to get insurance or face stiff fines from the state.
 
To be fair, many of those 1.2 million letters no doubt went to people who do have car insurance, but may have let it lapse at some point in the past, sometimes simply because they sold a car. 
 
The letters advise motorists that they have 60 days to provide the state with proof of insurance. Many motorists already potentially face fines in the hundreds of dollars.
 
The fact that many of the letters refer to lapses in coverage that may have occurred 10 to 20 years ago has many of the letters’ recipients fuming and calling the letters a money grab.
 
Still, with the Insurance Information Institute’s recent report on uninsured drivers showing Louisiana with about 13.9% of its drivers uninsured, well above the national average, money grab or not, Louisiana is dealing with—and taking steps to combat—a serious problem.
 
The Louisiana Office of Motor Vehicles (OMV) spent in the range of $500,000 on the mailing and hopes to collect up to $400 million or more in fines.
 
A spokesperson for the State Police, which oversees OMV, said the letters are an honest attempt to collect money that is owed the state. The letters were spurred by a recent change in state law that allows state agencies more leverage in collecting fines.
 
“People have been calling,” said Kelli Broussard, an agent with Jeff Davis Insurance in Lake Charles.

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