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Louisiana Tips for Car Insurance Savings

Car insurance in Louisiana is required for every driver on the road. To protect yourself from the law and from financial consequences attached to uncompensated losses, you should invest in a quality insurance plan. But this is not cheap. Most drivers in the state need to do everything they can to save money on all of their expenditures, including auto insurance premiums. Here is a rundown of some of the ways you can save money on Louisiana auto insurance. Read up on these savings methods and get some good ideas for minimizing the amount of money you spend on your annual premium.

Understand Each Auto Coverage Option

The first and maybe most important step toward saving money on your premium is to have a solid understanding of the different types of policies available so you can make informed choices about what to include and what to leave out. The state of Louisiana requires auto liability insurance, but anything beyond that is up to the covered driver.

Liability insurance protects the policy holder, household family members and anyone driving the covered vehicle with the policy holder's permission against the cost of bodily injury and property damage incurred to other vehicles and their passengers. This policy also covers you and your family members when driving another person's car, including rental vehicles. In the state of Louisiana, 15/30/25 is the minimum baseline for a three part split form liability plan, with each number representing in thousands of dollars the individual limit for the three parts of the policy [1].

Collision and comprehensive insurance are required for any Louisiana driver leasing or financing a vehicle as long as they owe money on it. In any other circumstance, they are strictly optional. Most drivers drop collision and comprehensive once a car is five years old or so, although this is not always the case. Collision insurance provides payment for property damage to your vehicle after an accident. Comprehensive pays for any covered non accident related loss. Examples include fire, explosion, theft, and falling objects.

Medical payments coverage handles medical expenses up to the policy limit for a certain specified period of time after an accident. It pays out regardless of fault in the accident, includes provisions for family members and passengers, and includes death benefits.

Uninsured and underinsured motorist protection covers the policy holder or other vehicle occupants against the cost of medical care if the covered vehicle is hit by another car and that driver's insurance is insufficient to cover the costs. Drivers in Louisiana also have an economic only option for this area of protection that costs less because it restricts them to seeking only actual cost benefits and not pain and suffering or other expenses. Uninsured and underinsured property damage policies are also available, providing for repairs to a covered vehicle up to $10,000 or the cash value of the car. These plans are not available for motorists who have collision insurance.

Rental car reimbursement and towing coverage are also available for LA auto owners. Certain older vehicles may not be eligible for towing plans, and rental reimbursement normally has a certain financial limit. As with any available area of coverage, it is wise to look into specific limitations and exclusions before you decide to enroll.

Don't Pay for Unnecessary Coverage

Once you know and understand the purpose behind each available mode of protection, you can make wise choices for coverage. Don't waste your money on insurance you don't need or that has no value in your situation. Collision and comprehensive insurance are a waste of money for cars not worth much, because they are based on the cash value of the car being insured. Medical payments coverage may be superfluous depending on the specifics of your medical insurance. Towing plans are unnecessary if you belong to an auto club or other group that provides this service to members. These are only a few examples. Look at each area of protection and decide for yourself whether you really need it.

Shop Around and Save Money

Finally, to save money on your Louisiana car insurance you should shop around and get multiple quotes. Find out ahead of time exactly what you need and don't need in an auto policy. Don't let insurers sell you unnecessary coverage. Get prices from several companies and find out where the best deals are. Ask for multi policy discounts from your home or life insurance provider. Get online and see if you can find a better deal there than you can by using traditional routes.

Look into every possible option you have as a consumer. Don't overpay for your car insurance. Examine the market, and understand your options for Louisiana car insurance.

[1] Retrieved 2010-04-03.


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