Reader’s Question:

My family and I just moved here in New Orleans, Louisiana. I know we’re in an area prone to really bad weather. I am wondering if I should make some adjustments to my automotive insurance strategy. I believe in sticking to the minimum that the state says I should carry. Can anyone offer some advice?

Chris

New Orleans, LA

Hello, Mr. Chris of New Orleans, Louisiana. I think that following what the state says is okay. My opinion is, if you think nothing can go wrong on the road and while your car is parked in bad weather, go stick to the minimums. But if you can afford going above the minimum set by the state, go for it. By the way, I think your state minimum is only for liability coverage. That’s about $10,000 per person injured by you. The cap per accident, I think, is at $20,000. If you do more damage than that, you might get sued.

Anyway, as for your strategy, I think you should consider worst-case scenarios. Since you live in a hurricane-prone area, I think that it will be wise to review some of the “what ifs?” It’ll definitely help if you could ask around your area, too. After you’ve done that, you can check with your auto-insurance company and get a quote for a full comprehensive coverage for your vehicle. Assuming your car is worth the trouble for the monthly payments, I’m sure you’ll appreciate less headaches resulting from flying objects hitting your car. If you can get a package that’ll replace your vehicle in case it gets totaled, even better. Have a pleasant stay there in New Orleans, Chris.

Tags: auto insurance, car insurance

Reader’s Question:

I’ve been shopping around for the cheapest car insurance available here in Kenner, Louisiana, and I’ve noticed that agents almost always mention 6-month auto insurance. I wonder, what’s the reason for this? Isn’t it better for them if you choose longer terms?

Sheila

Kenner, LA

A six-month car insurance can be a good thing, depending on what your insurance needs are. If you plan to travel and visit some place for six months or less, for instance, it would be a waste to get policies with longer terms, right? Or it could be that you’re planning to purchase a new vehicle before yearend. Or for various other reasons, some people actually prefer six months. If agents over there in Kenner, Louisiana seem to always try to sell you six-month terms, it may be because this actually permits them to adjust your premiums twice a year, as compared to once for a one-year policy, for example. This could mean higher costs for you, the consumer, and higher collectibles for them, the automotive insurance company. But before you think they’re all money-grubbing cold-hearted leeches, it would be prudent to note that short terms could actually be beneficial to you because you can divide the payments according to a timetable that you think is more suitable for you.

A lot of people have monthly schedules, but it makes financial sense for the companies to charge you higher rates for monthly payments than for six months or a yearly total.

Tags: auto insurance, Car Insurance Company, car insurance cost

Reader’s Question:

What does Economic Only UM coverage mean in Baton Rouge, Louisiana?

Meagan

Baton Rouge, LA

In Baton Rouge, Louisiana you have the option to choose to buy Uninsured Motorist Economic-Only coverage. This Uninsured Motorist Economic-Only is the same as Uninsured Motorist coverage except that it covers only the actual costs of injuries to you and the passengers of your automobile. Pain and suffering are not covered under this coverage.

Insurance carriers in Louisiana who offer, Uninsured Motorist Economic-Only coverage has it so this car insurance coverage also includes Economic Only Underinsured Motorist Coverage. Yes, you can obtain Uninsured Motorist Economic-Only with limits the same as your bodily liability limits or lower limits than your bodily injury coverage however this coverage limit cannot exceed the Bodily Injury Liability limits.

If you want to know more about Uninsured Motorist coverages (economic-only or full coverage) you may contact the LA Department of Insurance, the insurance regulator for this state.

Tags: auto insurance

Reader’s Question:

What will happen if I dont declare my traffic tickets when I am buying car insurance in Baton Rouge, Louisiana?

Alex

Baton Rouge, LA

When shopping or filling out an application for insurance you should always provide the complete and most accurate information possible. If the insurance carrier in Baton Rouge asks about your traffic violations that happened within a certain time period you will have to mention the traffic tickets that you received within that time frame.

If you do not inform your traffic tickets and therefore give inaccurate information about your driving history then when the insurance carrier runs your driving record, the car insurance quote you were given originally will have to be changed so that you can be rated appropriately using the information the insurance company finds out from your motor vehicle record (MVR).

For example if you forgot to inform an insurance company in Baton Rouge Louisiana of a speeding ticket you received two years ago then the amount for your insurance rate premium quoted to you could change once they find out about this violation and therefore to keep your car insurance policy in effect you would need to pay an additional amount to the insurance carrier. If you fail to tell an insurance carrier about a major violation, such as a DUI, then your insurance policy may be canceled.

If you leave off intentionally information or mislead the insurance carrier in order to get a lower premium rate it can be construed as misrepresentation in many states, a form of insurance fraud.

Tags: auto insurance, Car Insurance Company

Reader’s Question:

I would like to know how I could go about buying a non-owner’s car insurance policy in Louisiana?

Paul

New Orleans, LA

Hello there, Paul.

It’s good that you asked me this important question. First of all, you need to understand what the non-owner’s car insurance policy is essentially for. It can cover any damages that you may cause to someone’s property or body while driving a car which is not yours. This may include rented and borrowed cars. A non-owner’s car insurance policy is a kind of liability coverage which can help you sort out several insurance complications. You can easily have a non-owner’s car insurance policy if you have a commercial liability policy. You can just pay to add this on and you will be all set.

I can give you some tips on how you should go about purchasing your own non-owner’s car insurance policy. First of all, you better call several insurance companies and ask about obtaining a non-owner’s policy. Each and every state and insurance company invariably offers such a policy so you may not need to look specifically for companies that do in Louisiana.

Try to ask for information about the “Assigned Risk Program/Plan” offered to the insurance company by Louisiana. Such company should offer you a policy in accordance with the risk program and agents would rarely respond with a cold shoulder on this query. If you experience such, you can always complain since you are entitled to receive such coverage.

Reader’s Question:

What does uninsured motorist insurance cover in Louisiana?

Jim

Metairie, LA

The state of Louisiana Law requires drivers to carry liability coverage on any car they own. This coverage pays for personal injury or property damages for which you may be legally responsible, up to your policy’s dollar limits.

You may choose to buy uninsured motorist economic-only coverage. This coverage is similar with uninsured motorist coverage except that it covers only the actual costs of injuries to you and the passengers of your car. Pain and suffering are not included in this type of coverage.

Uninsured/Underinsured motorist property damage coverage provides for repairs to your car if you get involved in an accident with an uninsured driver. A $250 deductible applies under this type of coverage, and your recovery is limited to $10,000 or the actual cash value of the car, whichever is less. If your insurance policy includes collision and comprehensive insurance, this coverage is not available.

Reader’s Question:

I was wondering how car insurance companies is assessed. Where the cheapest auto insurance rates are is what I am curious about, but since that is too general I am interested in searching how I could better understand how an insurance rate is calculated in any given area.

Mark

Baton Rouge, LA

Car insurance rates are based on different factors which can vary depending upon state insurance laws as well as individual insurance company’s underwriting guidelines.

The basics though of how an auto insurance rate is that the premium you pay consists of a “base rate” in addition or minus amounts reflecting factors such as your age, marital status, gender, driving pattern, claims history, vehicle type, driving record.

Normally there is a different base rate depending upon the type of car being insured and the geographical area where the motorist resides. While individual carriers may vary in the amounts they assess for each factor, the major rating factors are fairly universal.

Q: If I have SR22 for non owner insurance and I get into an accident in a friend’s car who also has insurance, whose coverage will kick in first?

A: Well, the point behind SR22 for non owner insurance is not to double up insurance when a vehicle is already insured, but to nor give the benefit of the doubt to a driver who has already had their license suspended, which is why you must have your SR22 for non owner insurance.

That is to say, when you are driving in an insured car, your SR22 for non owner insurance is pretty much just back up. If you get into an accident, your friend’s coverage will kick in first because car insurance follows the car in most cases, not the driver. Once your friend’s liability runs out, your own will continue.

Q: How do I get non owner SR22 car insurance and what is it?

A: Most car insurance companies which sell regular SR22 car insurance will also sell a non owner SR22, since the risk in this case is essentially the same. You may, like other SR22 buyers, be forced to seek coverage among high risk providers and the Louisiana assigned risk pool.

Non owner SR22 insurance is a policy specifically tailored to cover someone who does not own there own car, but still drives one in someone else’s name. If you intend to do any driving at all after your license is suspended and you don’t own a car, you will need non owner SR22.

One of the downsides of non owner SR22 car insurance is that you are only able to get minimum liability insurance and even that costs more than most. Hopefully if you get into an accident, the car owner will have fuller coverage.

Q: What types of SR22 filing are there?

A: There are three basic types of SR22 filing, and only one will really apply to you, but your prices for any will differ so it is important that you choose the right one. If you choose wrong, you may find yourself in a bind some day soon.

1. Vehicle Operator’s SR22 filing - This is for if you are only a driver, but do not own a car. Even lacking a car of your own, you will all the same need to do SR22 filing if you plan to drive someone else’s.

2. Owner’s SR22 filing - This is for any vehicles you own.

3. Operators-Owners SR22 filing - This is the most common, being for both your own vehicle and also extending coverage to you when you drive other people’s vehicles.