Did you know Louisiana is considered an at-fault state? This means Louisiana drivers are required to have liability coverage for their automobiles. The required liability coverage helps to cover the costs of injuries, property damage, and any other relevant damages when you’re at fault in a motor vehicle accident.
What are liability limits, and how do they affect your rates?
Liability limits are the maximum amount your insurance will pay for damages or injuries caused by a policyholder during an automobile accident. As your liability limit increases, your premium increases. Although you may typically want to go with the least expensive option, it is best to compare various policies to determine whether it is worth paying for the higher coverage.
What is the state minimum for Louisiana?
First, let’s start with what precisely a state minimum is. The state minimum is the minimum requirement for liability coverage your state will allow for you to drive legally. In Louisiana, the minimum liability limit for auto insurance is 15/30/25. What does that mean?
15 – If you are in an accident and cause bodily injury to another person, your insurance will pay up to $15,000 for medical costs.
30 – In the instance of an automobile accident where bodily injury to more than one person occurs, your insurance will pay up to $30,000 for medical costs. This is limited to $30,000 per accident.
25 – If you are at fault for damages to another’s property or vehicle, your insurance will pay up to $25,000 for damages per accident.
Therefore, your insurance will pay up to $15,000 for injuries to another person, up to $30,000 for injuries to more than one person, and up to $25,000 for damages to the other person’s property or vehicle if you are at fault for an automobile accident.
What happens if you don’t have coverage?
In Louisiana, drivers are required to have liability coverage in order to operate a vehicle legally. You are subject to charges anywhere from $500 to $1,000 if you are caught driving without coverage, falsely claiming coverage, or are involved in an accident without being covered.
On top of fines, you may have your driving privileges revoked or suspended for up to 180 days if caught without coverage. If you falsely claim to have insurance, you could have your license revoked for 12 to 18 months.
How do state minimums affect your premium?
The short answer is that state minimums do not help your premium in the long run. Although state minimums are an option for Louisiana drivers, they are not always the best option.
Purchasing state minimums for liability coverage can affect your rate by leaving you more financially exposed if you are at fault for an accident. If you cause an accident and you only have the minimum for liability, you may have to foot a higher cost than if you had better coverage.
Whether you’re seeking assistance picking a policy or need guidance, our team is here to help. Contact us today to discuss your auto insurance needs and determine what policy or coverage best fits you and your family.
