“Money Grab” letters do the job

It was accused of being a money grab by the State Police – but it’s worked - $6 million already collected for lapsed insurance and fines

Insurance News

By Lyle Adriano

The Office of Motor Vehicles of the state of Louisiana sent out more than a million letters to drivers across the state, hoping to collect over $400 million in fines from approximately 550,000 motorists with lapsed auto insurance. The move was met with criticism, as many people felt that it was a money grab by State Police.

Many drivers claim they were improperly accused of lapsed insurance on vehicles they have sold or are now registered in other states.

The letters were sent in October, with fines up to $656 for some people.

"This was never driven by any pay raise, this was never driven by any kind of money grab." commented State Police Colonel Mike Edmonson, when asked of the nature of the fines.

Jim Donelon, Louisiana Insurance Commissioner, sees the fines as unfair and excessive, especially when there was seemingly no forewarning or appeal process leading to the decision.

"I think that is not the way to treat the citizens of our state by its government," Donelon said.

"My whole goal is to get compliance and to get people to have insurance to drive a vehicle," stated Edmonson.

As of November 4, the Louisiana State Police had cleared more than 41,000 cases of drivers with lapsed insurance, with $6 million in fines collected as a result.

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