Like other states, Louisiana requires its drivers to carry a minimum amount of auto liability insurance to cover any property damage or injuries that they cause in an accident. If you have the financial means to compensate another driver without needing to rely on insurance, you may be able to become self-insured.
Louisiana issues a self-insurance certificate from the Office of Motor Vehicles that you can use in place of having an insurance policy. Once you have this certificate, you don't need to carry auto insurance, and this certificate acts as proof of insurance if you're pulled over.
You must apply to the Office of Motor Vehicles using form DPSMV3026. There is a $100 application fee, and the form will ask for financial information to show that you're able to self-insure. You must reapply annually, and the deadline is July 1st regardless of when you originally applied. It takes an average of 20 days for the state to review your application.
If your purchase a new car, you simply need to provide proof of ownership and current registration to have it added to your self-insured vehicles list. You should also notify the state to remove any vehicles you sold.
If you do cause injuries or property damage, you must pay within 60 days of a final judgment. This would usually mean a court case if you didn't settle. If you don't pay on time, your self-insured certificate will be revoked, and you'll be ineligible for a new one for five years.