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Mandatory Auto Insurance in Louisiana

Just like the Illinois mandatory insurance requirements, drivers in the state of Louisiana are bound by state law to carry liability auto insurance on their vehicles in order to legally drive their cars on state roads. Like virtually every other part of the country, Louisiana legally mandates car insurance according to law, meaning that drivers must comply or risk the consequences. Registration and other activities are impacted by insurance compliance, so it is important for all of us to make sure we comply with the law and keep active insurance on our vehicles. Liability car insurance is relatively cheap, so for those of us who cannot afford more widespread coverage, at least there are ways to get into compliance without having to spend a ton of money.

LA Liability Car Insurance Requirements

Liability insurance for drivers is required by the state of Louisiana. This means that each and every motorist must be protected against possible accident related liability expenses according to the guidelines set forth by the state. In the state Louisiana, auto insurance companies sell split limit liability policies. This means that drivers in the state have liability plans with three separate maximum limits of protection, each with its own deductible. The state sets minimum acceptable limits for this protection, and Louisiana car insurance providers are barred by law from selling insurance plans that do not meet these requirements.

Fortunately for those of us who do not have a lot of money to spend on auto insurance, the state minimums for liability auto insurance are relatively low. The state of Louisiana sets minimums at 15/30/25 for their liability policies [1]. These three numbers express, in thousands, the baseline levels of protection for single person bodily injury, multiple victim bodily injury, and property damage liability insurance. All three numbers are per accident figures. Drivers are free to increase their limits of coverage and many of us do. In fact, experts in the insurance industry usually recommend much higher levels of protection because liability coverage is cheap as far as auto insurance goes and because accident damages for medical costs and auto or property repairs can far exceed the minimums in many cases.

Optional Louisiana Car Insurance Coverage

For drivers across the state, there are also several additional optional areas of coverage they can choose to add on to their policies to increase their protection as covered drivers. Uninsured motorist coverage protects drivers from having to personally take care of the cost of repairing their own vehicles or paying for their own medical care when hit by an uninsured driver. Insured policy holders can also make claims on UM coverage when hit and run accidents occur, as insurance companies regard hit and run motorists as though they were uninsured.

Collision insurance is also available. For some drivers it is actually mandatory. Although the state of Louisiana has no legal requirements for drivers to include collision in their policies, most financial institutions do while there is a lien on a vehicle. So, if you lease or finance your car you'll likely have to include some form of local car insurance collision coverage in your Louisiana car insurance policy.

The same is also true of comprehensive protection. Drivers who lease or finance also must include comprehensive according to the needs of their lenders. Comprehensive pays for property losses for all causes other than car accidents. Trees falling on cars, deer hits, theft, and many other loss types are all covered under this umbrella of protection. Drivers who have comprehensive have deductibles and limits of protection just the same as liability and UM policies.

Importance of Louisiana Auto Insurance

One of the more obvious reasons why it is important for all of us to carry certifiable and current car insurance protection on our vehicles as Louisiana motorists is the simple fact that it is required by law. This is reason enough to get insured; to avoid trouble and to remain compliant and thus make it possible to register your car or renew registration makes it worthwhile to get insured. But there are also other reasons why auto insurance is important for all state drivers.

The essential financial protection afforded by solid auto coverage is a godsend to most drivers. For the vast majority of auto owners among us, the prospect of having to pay out of pocket for large liability settlements is disconcerting to say the least. It is true that there are a select few who have the kind of liquidity to handle these expenses, and these are many of the same ones who choose to self insure.

But for the most part the financial safeguards put into place on our behalf make Louisiana auto insurance hugely beneficial to motorists in the state. Get mandatory auto insurance in Louisiana and protect yourself while getting compliant with state insurance law.

[1] http://www.ldi.state.la.us/programs/have_a_question/faq.aspx?category=2b Retrieved 2010-08-08.

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