Motor vehicle insurance is one of several legal requirements imposed on Louisiana drivers. State law requires that every driver carry a minimum amount of liability coverage. They also have the option of investing in additional liability coverage and several forms of supplemental insurance that protect them in more circumstances.
Drivers may wonder whether they have enough insurance, especially if they hear about the costs generated from another crash. Many drivers worry about rising costs and just try to keep their prices as low as possible. The safest option is to maximize coverage instead of reducing costs.
How can drivers determine if they have enough coverage?
Understanding what the state requires
The baseline requirements for insurance in Louisiana are relatively low. The state requires $25,000 worth of property damage liability coverage.
Drivers also need to carry $15,000 in bodily injury liability coverage in case they cause a crash where one person gets hurt. That minimum coverage amount doubles to $30,000 in scenarios where two or more people sustain injuries from a single collision.
Liability coverage only applies in scenarios where the policyholder is at fault. Of course, what the state requires doesn’t necessarily cover the cost to replace or repair newer, more valuable vehicles. It is also unrealistically low given the cost of trauma care and surgery.
Drivers often choose to carry $100,000 or more in property damage coverage and $250,000 or more in liability coverage to better indemnify themselves if they cause a crash.
What other coverage can drivers carry?
Motorists can also carry comprehensive and collision coverage. These forms of supplemental coverage help pay for expenses including damage to the vehicle. Comprehensive or collision coverage could help in a scenario where a driver hits an animal and needs to repair their vehicle, for example.
Many drivers choose to carry uninsured and underinsured motorist protection. This coverage works much like liability coverage does. It pays for property damage and injury-related losses. Uninsured motorist protection helps when a driver with a lapsed insurance policy causes a crash. It can also reimburse those involved in hit-and-run collisions.
Underinsured motorist coverage can supplement the liability coverage available through the at-fault driver when crash costs are particularly high. Factors including the household standard of living and personal resources can influence the optimal amount of insurance coverage.
Reviewing insurance policies can help drivers protect themselves more effectively if they ever get into a car crash. Drivers may also need help handling complicated insurance claims if they sustain significant losses in a collision.
