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If you’re like most drivers in Louisiana, then car insurance is one of your biggest monthly expenses. Although everyone wants to save money, settling for the minimum required car insurance coverage could put you in a financially precarious position.
Fortunately, if you know how insurance rates are calculated, research the various types of policies available, and ask about discounts, you may be able to find decent coverage at a fairly low cost. Read on to learn four facts to consider before purchasing auto insurance in Louisiana:
1. Louisiana Has A 15/30/25 Minimum Liability Insurance Requirement
All drivers in Louisiana are required to carry liability insurance on their vehicles. Liability insurance helps cover the other driver’s expenses if you cause an accident. “15/30/25” coverage limits means your insurance must cover $15,000 for bodily injury to one person, $30,000 for total bodily injuries per collision, and $25,000 for property damage.
You are required to show proof of insurance when renewing or obtaining your driver’s license or vehicle registrations. You are also required to provide proof of insurance any time an officer stops you.
If you are caught driving without insurance, you will be fined up to $100, your plates may be confiscated, and your registration may be suspended. You will also face $60 in reinstatement fees as well as storage fees if your vehicle was impounded. These costs increase for subsequent offenses.
2. Add-On Coverage Can Help Protect Your Financial Security
There are several types of insurance available in Louisiana besides liability coverage. For example:
- Collision coverage pays for repairs to your own car after an accident.
- Comprehensive coverage pays for repairs to your car caused by non-accident related issues such as vandalism or inclement weather.
- Uninsured/underinsured motorist (UM/UIM) coverage helps cover your damages when you are in an accident with an uninsured or underinsured driver.
- Medical payments coverage pays for medical or funeral expenses after an accident.
- Rental reimbursement coverage allows you to rent a car while you wait for repairs or while you search for a new car.
- Towing and labor coverage pays for towing services as well as some of the labor portion of the repairs.
3. Rates Can Vary Significantly From One Auto Insurance Carrier To The Next
Each carrier takes a different approach to calculating premiums and, therefore, caters to slightly different driver types. Some insurers offer accident forgiveness policies, others have safe-driver discounts, and still others are more lenient after a person is convicted of DWI or DUI. This is why comparing auto insurance rates from multiple providers is an essential step in finding the lowest rates for your particular needs and budget.
4. Many Insurance Companies Offer Discounts
You may be able to get your rates reduced for avoiding accidents or traffic violations for consecutive years, getting good grades, being a student, purchasing multiple insurance policies, or adding multiple vehicles to your policy. But don’t expect your insurance company to tell you about these discounts; make it a point to ask about them before you sign on to a new policy or renew your policy.
Did we miss any important facts to consider before buying auto insurance in Louisiana? Feel free to share your insights in the Comments section below.