Louisiana Drivers May Now Repay Auto Insurance Fines in Installments

Louisiana drivers struggling to pay unpaid fines from lapsed car insurance coverage can now find some relief.

Gov. John Bel Edwards’ office announced the governor has signed a bill to authorize driver payment plans to repay the state Office of Motor Vehicles for the outstanding fines.

The new law took effect immediately.

Louisiana law requires drivers to have insurance on their vehicles. The state can revoke licenses and seize bank accounts and tax refunds if fines remain unpaid.

House Bill 245 from Rep. Denise Marcelle, a Baton Rouge Democrat, outlines six payment plans for drivers owing $250 or more. The largest plan offers installments for drivers owing more than $5,000.

The OMV is owed more than $250 million from thousands of drivers. The office reports 275,000 drivers are listed as owing fines in more than 550,000 lapsed insurance cases listed in its database that dates back to 1986. Fines range from $125 to $525 for each violation.

As of May 2016, the OMV had collected fines and proper documentation to clear more than 50,000 records, but officials said they were waiting to start the process to collect additional outstanding lapsed coverage penalties until the governor took final action on the bill.