What Are The Car Insurance Requirements In Louisiana?
Louisiana requires what we call a $15,000, $30,000, $25,000 policy. It means that there is $15,000 of insurance coverage for bodily injury to one person and $30,000 of bodily injury coverage for more than one person in the vehicle, plus $25,000 for damage to someone else’s vehicle or property. It’s important to realize that $15,000 for one person is not a lot of coverage. If you injure a doctor or a lawyer, or anyone who makes a good deal of money by way of wages, and he or she is not able to work due to the injuries, $15,000 is not going to cover much. So, the value of an individual’s claim may be $150,000.00, but your insurance policy will pay only $15,000.00. The claimant will sue you for the other $135,000.00. If you hit and total someone’s vehicle, $25,000 may not be enough to replace it.
Likewise, if there are more than one occupant of the car you hit, and their combined claims (for example), have a value of $60,000.00. Your insurance policy only pays them $30,000.00 and they sue you for the $30,000.00 not covered by your policy.
The same holds true if you have only $25,000.00 coverage for damage to the other vehicle involved. Let’s say you damage a nice new SUV to the extent of $50,000.00. Your insurance policy only pays $25,000.00 of this and they sue you for the remaining $25,000.00.
How Much Insurance Should Someone Carry?
You should purchase as much insurance as you can afford to protect your wealth. If you own a home, a vehicle, or a savings or checking account, then you should have enough liability insurance to protect their value. You could be sued and held liable for several hundreds of thousands of dollars. I recommend you have, as a minimum of coverage on your vehicle, at least $100,000 per person, $300,000 for all the people in the other vehicle, and at least a $100,000 limit for damage to the other person’s automobile.
Are A Lot Of People Are Surprised At The Amount Of Insurance That They Actually Are Carrying?
Some people are quite surprised to find out what their own auto insurance policy coverage limits are. They certainly should know that information. But it could be that one spouse purchased the policy and did not inform the other, or it is an old policy, just renewed each year with no thought about coverage amounts. The thing that surprises a lot of people is when they find out the amount of coverage on the other vehicle in the wreck. It is not unusual that the at fault driver has only a $15,000 per person, $30,000 for all combined claims, automobile policy.
Does Louisiana Require Uninsured Or Underinsured Motorist Coverage?
Louisiana does not require that the insurance company sell you uninsured motorist coverage. Nor does Louisiana law require you to purchase it. What the Louisiana law does require is that the insurance company must offer this coverage to you and to anyone who buys their liability insurance coverage. They have to make it clear to you that uninsured motorist coverage is available. If, after talking about it with your insurance agent, you decide not to purchase it, he is required to get a written statement from you that clearly states that you do not want to have uninsured motorist protection and that you waive it. There was legislation passed to make it clear and plain, so the courts will know that you knowingly and willingly declined to purchase uninsured motorist coverage.
For more information on Car Insurance Requirements In Louisiana, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (225) 228-3450.
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