What are the requirements to become self insured for auto in Louisiana?

In Louisiana, self-insurance for automobiles is an option for individuals and businesses who want to assume the financial risk of insuring themselves instead of purchasing insurance from a third-party provider. However, there are specific requirements that must be met in order to qualify for self-insurance.

• Financial Responsibility: Individuals and businesses must demonstrate that they have the financial resources to pay for any losses that may occur. This usually involves providing financial statements and proof of assets to the Louisiana Department of Insurance.
• Bond or Letter of Credit: In order to self-insure, individuals and businesses must also provide a bond or letter of credit to the Louisiana Department of Insurance. This serves as a guarantee that they will be able to cover any losses that occur.
• Minimum Net Worth: There is a minimum net worth requirement in order to self-insure. The amount varies depending on the type of self-insurance being considered. For example, for personal automobile insurance, the minimum net worth requirement is $25,000.
• Minimum Number of Vehicles: In order to self-insure, individuals and businesses must have a minimum number of vehicles. The exact number varies depending on the type of self-insurance being considered.
• Approval Process: Individuals and businesses must apply for approval to self-insure. This involves submitting an application and supporting documentation to the Louisiana Department of Insurance for review.
• Annual Renewal: Self-insured individuals and businesses must renew their self-insurance status annually. This involves submitting updated financial statements and other documentation to the Louisiana Department of Insurance for review.

It's important to note that self-insurance is not available for all types of insurance. In Louisiana Car Insurance Discounts, self-insurance is typically only allowed for automobile liability insurance. If you are considering self-insurance for automobile liability in Louisiana, it's important to consult with a licensed insurance professional and/or an attorney to ensure that you are complying with all state requirements and have a thorough understanding of the risks and benefits of self-insurance.