Auto Insurance
 

Bodily injury and property damage insurance is compulsory for all automobile owners in Louisiana. 

General terms related to auto insurance are briefly described below.

Depending on your unique circumstances, you may decide whether you need -- or do not need -- all these of these features. 

 

• Bodily injury and property damage liability coverage: This coverage (with a specified limit) pays for damages if the insured injures a person, or damages a person's property, in an auto accident.

• Uninsured and underinsured motorists liability coverage: In an accident with another driver who is at fault, and who doesn’t carry any -- or enough -- liability  (even though it is required by State law), this coverage pays for bodily injury costs (with a specified limit) for the insured or the insured's passengers.

• Collision: In an automobile accident, regardless of who is at fault, collision insurance pays (with a specified limit and a deductible) to replace or repair the insured's vehicle. 

• Comprehensive: This coverage pays (with a specified limit and a deductible) to repair the insured's vehicle in events such as hail damage, a tree limb falling on the auto, or other risks that do not involve an automobile collision.

• Medical payments: This feature provides coverage (with a specified limit) for the insured and the insured's passengers for medical expenses as a result of an accident. The coverage pays regardless of who is at fault.

 

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Consider the following before deciding on what coverage you need:

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• Increasing your liability limits and your deductibles may be appropriate. The additional liability coverage raises your premium; however, the premium increase may be offset if you increase your deductibles.  

• You buy insurance to cover big financial risks. If you’re involved in a major accident and cars are totaled, people are injured or killed, or property is damaged, the total financial impact could be very significant. The liability benefits on your automobile policy help to protect you from this financial devastation. 

• If you have a much older vehicle, a time will come when maintaining collision and comprehensive insurance coverage may not be financially worthwhile. One way to help decide on dropping collision and comprehensive coverage is to consider whether or not the worth of the vehicle is less than ten times  that portion of the total auto policy premium. If the auto is worth less, you may decide to assume the risk of personally paying to replace the vehicle if needed after an accident. 

• Liability coverage is always needed — An older automobile can still wreak havoc in an accident. For that reason, State law requires that you maintain bodily injury and property damage liability insurance.