What automotive liability insurance coverage does Louisiana impose?

Andrew

Shreveport, LA

Having an automotive insurance policy entails many benefits, especially if your policy covers the minimum required by the state of Louisiana. Being a driver, you are expected to be responsible for your own safety and for the safety of those people around you (your passengers, fellow drivers and pedestrians). With liability automotive insurance, you get an assurance that damages to these people and to yourself are financially covered. This is a good way of protecting your assets because in effect, you are passing the financial responsibility to the automotive insurance company by letting them take care of the expenses brought about by the accident.

If you have a collision and comprehensive coverage, your automotive insurance will protect your vehicle from expenses brought by accidents, vandalism, or theft. This also serves as a financial responsibility guarantee to the institution where you borrowed money from to buy your vehicle. This coverage is most beneficial to those whose vehicles have high market values.

The Louisiana state law suggests that if you want to drive a motor vehicle, you should be able to present proof that you have the resources to cover any damages that you may cause to others. This proof of financial responsibility must cover 10 thousand dollars for the bodily injury claim of one person, 20 thousand dollars for the bodily injury claims of two or more persons (for one accident only), and 10 thousand dollars for the vehicle or property damage claims of the other party. This is referred to as the 10/20/10 minimum automotive liability coverage of Louisiana.

Tags: auto insurance coverage, auto insurance policy, car insurance law, collision insurance coverage, comprehensive insurance coverage

My friend just got in a car wreck here in Louisiana a few days ago, and when the police asked for her car insurance, they found out that it has been cancelled by the auto insurance company. She was unaware of the cancellation, and now she might be given more citations because of it. What will happen to her?

Crissy

New Orleans, LA

In Louisiana, there is a law called “No Pay, No Play” which is implemented when a person who does not have liability insurance gets involved in a car accident. The “No Pay, No Play” law is stated in the 1998 LA Revised Statute 32:866. According to this statute, the party who does not have liability insurance will not be allowed to collect for the first ten thousand dollars of the damages (for bodily injury or property damage claim), regardless of whose fault it was. Therefore, if you were found at fault, you would have to be personally responsible for the damages that you caused to the other party. Likewise, you would have to be personally accountable for your own damages since there is no automotive insurance policy that you could claim from.

Under ordinary circumstances, an automotive insurance policy in Louisiana can only be cancelled if you miss your premium payment date, if you file a counterfeit or fake claim, or if your driver’s license or car registration is suspended. If your automotive insurance company decides to cancel your policy, you should expect a twenty-day notice from them. If you request an explanation for the non-renewal, the automotive insurance company must also be able to provide you with the details in writing.

There should be no way for you not to find out that your automotive insurance policy is cancelled. However, in case you didn’t get any notification from the automotive insurance company, you could contact the Louisiana Department of Insurance to get some advice regarding this matter.

Tags: auto insurance policy, auto insurance premium, car insurance law, liability insurance

I have purchased a car insurance policy here in Louisiana. Can I still lower my premiums?

Meg

Monroe, LA

I understand that you do want to save money, but bear in mind that your car insurance is there to assist against big losses when you get into an accident. It is really not just for minor incidents.

One way to lower your premiums would be to select higher deductibles. But in doing so, you must also be sure that you have adequate funds in your savings account to pay for the deductible costs if ever you have an accident.

Another thing you can do would be to cancel the coverages that you don’t need anymore–coverages for cars that you no longer finance through a bank or financial institution, or coverage on cars that are old and do not have much value, for instance. You must still be careful, though, because there are some cases that people canceled the coverages that aren’t required and were unfortunate enough to get involved in an accident with an uninsured driver, and they had to pay a large amount.

Finally, you should be aware of the discounts that are being offered by your car insurance provider. You can take safety driving courses, purchase safety and security devices or insure multiple cars with the same provider. You can also declare that you have an accident-free record or that you are a non-smoker, a preferred driver or a retiree. You can discuss with your agent in Louisiana the personalized discounts that you can avail of.

Tags: auto insurance coverage, auto insurance premium, Car insurance discounts, driving school

My teenage son recently got his driver’s license here in Louisiana. How much would his car insurance cost me?

Jonathan

Metairie, LA

Honestly speaking, it is very expensive to have car insurance for a teenage driver like your son. But there are, however, certain ways to minimize your costs when purchasing car insurance for your kids. After all, what’s important is your son’s safety and protection while he is out driving. And adding your teenage son to your policy can add to his security when traveling even though it means paying high premiums.
One way of reducing your costs is by ensuring that your son drives safely. Imagine that even just a ticket from a traffic cop or a slight damage to another car’s fender is enough to make your car insurance premium rates go higher. So, try and talk to your son about driving safely.

There are also companies in Louisiana that offer car insurance rates for teen drivers with a good rating and a good record. If your son has a good driving record, then that could mean lower rates for you. Just make sure that your son is included in your car insurance policy, and if it possible, you can add him as an occasional driver to further lower your rates.

Another thing to consider is the kind of car that your teenage son will be driving. Make sure that the car has a lot of safety features in it. I think it is also better that your son drives an older model or a much slower car to avoid accidents caused by speeding. A safe and inexpensive car can mean low car insurance rates for you as well. Although, of course, persuading your son to get a cheaper car can be challenging.

Keep in mind to check out different car insurance rates for teenagers. Not every company in Louisiana offer the same amount for premiums, so be sure to gather more information. There are a lot of websites on the Internet that can help you get a free quote. So buckle up and start surfing the Web.

Tags: teen insurance, Young driver car insurance

I just moved to Louisiana. Recently, I overheard my coworkers saying the state was a comparative negligence state. What does the term mean? How does it affect me?

Jamie

Shreveport, LA

When vehicular accidents happen, the first question that pops into people’s heads is: “Will my automotive insurance cover the damage?” Jamie, the answer to this question depends on which state you live in, what your car insurance coverage is and whether or not it was your fault. The policy varies depending on your location. For example, in some states, if you are the slightest bit at fault, the insurance company will not pay for the damages to your car or any injury you may have incurred. If I am not mistaken, this is called pure contributory negligence. You are either at fault or you’re not. This is a very strict system which I believe only five states currently follow.

If your co-workers refer to Louisiana as a comparative negligence state, that means the state takes into consideration the extent of your so-called negligence. After an accident, your automobile insurance company may conduct an investigation and send an adjuster to determine how much you were at fault and how much you are entitled to receive. The good news is this is negotiable. There aren’t fixed mathematical formulas to arrive at the figures. So get yourself a standard auto insurance and hire a good lawyer. Then again, nothing beats simply driving safely.

Tags: auto insurance, car insurance

Hi there! I’m John from Monroe, Louisiana. I’m planning to purchase a new SUV on an 84-month loan term. I once heard a story about a friend of mine whose brand new car got stolen before he was able to pay his loan off. Will a comprehensive insurance cover all my losses if this ever happens to me?

John

Monroe, LA

Well, John with a comprehensive auto insurance, you might be granted your car’s actual cash value at the time of the accident or theft. So if it was worth, say, $300 when it was totaled, your insurance company will pay you that amount.

As you may know, car values go down significantly in a matter of months. So the problem is the value of your vehicle when you lose it might be less than your outstanding balance. This depends largely on the terms of your loan. That means you will be receiving less (sometimes much less!) from your insurance company than the amount you owe for the car.

You can prepare for this situation by getting yourself a gap insurance. Basically, this type of insurance guarantees that you won’t have to pay the difference between the value of your car and your loan.

Let’s put it this way: If at the time of the accident, the actual cash value of your car is $300 and you still owe the car company $400 dollars, gap insurance will shoulder the $100 for you. There are however limits to the coverage. You should really visit an insurance dealer to get a clearer picture. Be sure to inform him of the details of your loan or lease, and ask him specifically what is included in the gap insurance coverage.

Tags: auto insurance, car insurance, comprehensive insurance coverage

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

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

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

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