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Louisiana’s driver’s guide gives staged crashes, repair shop scams and car theft their own section, and the topics can appear on the knowledge test. This page covers the warning signs of a staged crash, what to do at the scene and Louisiana’s proof of insurance rules. If you cannot show insurance when stopped, police seize your license plate.
Signs you may be in a staged crash
The guide’s advice points to these red flags:
- A crash that happens because you were following too closely, such as a car ahead braking hard for no reason
- Other drivers who will not exchange information or show a current driver’s license
- People who were not involved coming up to ask whether you have a lawyer or a doctor
- A tow truck that just happens to show up and offers to take your car to a shop you have never heard of
- Extra passengers in the other car who were not there when the crash happened
What to do after a crash in Louisiana
- Call the police right away and get an item number for the official crash report.
- Exchange contact information using each driver’s current driver’s license. If someone refuses, ask the officer to get it for you.
- Take photos of the damage to every vehicle and of how many people are in each one.
- Avoid people who were not involved, especially anyone asking about lawyers or doctors.
- Arrange your own tow through your roadside assistance if you have it. If you use a tow truck that turns up at the scene, send your car to a repair shop you chose in advance.
- Report the crash to your insurer or agent quickly, with the police item number. Send any calls about the crash to your claims handler.
Louisiana law also requires you to stop, identify yourself and give reasonable help after any crash you are involved in. Hit and run can mean a fine and jail. Full national checklist: what to do after a car accident.
The five common types of auto insurance fraud
| Type | What happens |
|---|---|
| Fictional theft | An owner reports a car “stolen” that is really in storage |
| Repair shop rip-off | A shop offers to inflate the damage estimate to cover your deductible |
| Uncompleted repairs | A shop does not replace parts the repair needs |
| Deceptive claim | Someone claims for damage that was already claimed before |
| Staged collision | A crash is set up on purpose to make claims |
A shop that offers to “cover your deductible” by inflating the estimate is asking you to join in insurance fraud.
Avoiding repair fraud
- Use a reputable collision shop with ASE-certified mechanics.
- Get a recommendation from your insurer, family or friends.
- Pick a clean, orderly shop with up-to-date equipment.
- Ask for a written damage report, not just a price estimate.
- Get a written warranty on parts and paint.
Proof of insurance rules in Louisiana
- Every vehicle used on Louisiana highways must have liability insurance or an allowed substitute.
- Your insurance card must be in the vehicle at all times. You must show it whenever a law enforcement officer asks.
- To count, the proof must show the company name, policy number, effective dates, vehicle description, insured person’s name and NAIC number.
- When you get a license, you must show proof of insurance for the vehicles you own.
If you cannot show proof when stopped
- The officer seizes your license plate, and your vehicle may be impounded.
- You have 3 calendar days, not counting Saturdays, Sundays and legal holidays, to show proof at the OMV office named on your notice.
- Miss that deadline and the plate is destroyed. You then pay all the fees to register the vehicle again.
Giving false information about your insurance can get your registration suspended, plus a court fine and jail. If you stop driving a vehicle, surrender the plate to the OMV before you cancel the insurance. Otherwise you face penalties. For minimum coverage, see car insurance for new drivers and check the current amounts with the Louisiana Department of Insurance.
Park Smart: stopping car theft
Tips from the Louisiana Automobile Theft and Insurance Fraud Prevention Authority (LATIFPA):
- Do: lock the doors, close the windows, park in well-lit areas, put valuables in the trunk, and use immobilizers and theft deterrents.
- Don’t: leave the keys in the ignition, even while pumping gas or running into a store. Don’t leave a purse, laptop, phone or packages in view, hide a spare key on the car or keep a firearm in the vehicle.
How to report insurance fraud in Louisiana
Contact the Louisiana Department of Insurance Fraud Division through “Report Insurance Fraud” on ldi.la.gov, or call 225-342-5900. For theft prevention resources, contact LATIFPA on 225-219-0452.
Common questions
Is staging a crash a crime in Louisiana?
Yes, it is insurance fraud. The Louisiana Department of Insurance handles fraud reports and can explain the penalties.
Do I have to keep my insurance card in the car in Louisiana?
Yes, at all times while the vehicle is in use.
How do I get my plate back after it was seized?
Take valid proof of insurance to the OMV office named on your notice within 3 calendar days, not counting weekends and legal holidays.
Can a learner be tested on this?
The knowledge test draws on the whole Class D and E Driver’s Guide, and this is part of Chapter 6. See the Louisiana knowledge test guide.
Related: Louisiana road test vehicle checklist (proof of insurance is required). Main guide: learning to drive in Louisiana.
Sources
- Louisiana Office of Motor Vehicles, “Class D & E Driver’s Guide” DPSMV2052 (R08/25), Chapter 6: Automobile Insurance Fraud, Staged Crashes, Park Smart (public.powerdms.com/LADPSC)
- Louisiana Office of Motor Vehicles, “Class D & E Driver’s Guide” DPSMV2052 (R08/25), Chapter 1 and Chapter 11: Proof of Insurance (public.powerdms.com/LADPSC)
- Louisiana Office of Motor Vehicles, “Class D & E Driver’s Guide” DPSMV2052 (R08/25), Chapter 9: Hit and Run Driving (public.powerdms.com/LADPSC)