Auto insurance coverage has been made mandatory in almost all the states in the United States of America. This is to ensure that every motorist will have enough finances to be able to pay for any damage he might have caused in an accident. This is in accordance with the financial responsibility laws. The state of Louisiana also follows the Tort system of rules. According to the Tort system, in case of an accident, a person has to be found responsible for an accident and this person and his insurance company will have to pay for any and all the damages caused.
Every state fixes a minimum amount of insurance known as minimum liability. For the state of Louisiana, the minimum liability is of the form 10/20/10. This stands for a minimum of ten thousand dollars for bodily injury per person in an accident. The minimum amount for bodily injury in total is twenty thousand dollars, covering two people. The minimum amount for property damage is ten thousand dollars. Bodily injury will cover any medical costs for injuries sustained during the accident and will also cover lost wages, if any. Property damage will cover any damage the car might have suffered. It will pay for any repair or even replacement if needed. It will also pay for damages caused to buildings, fences and lamp posts.
While this is the minimum liability, insurance companies advise the motorist to get insurance for higher amounts. The ideal amount would a hundred thousand dollars for bodily injury per person and three hundred thousand dollars for bodily injury in total.
There are many other forms of insurance coverage as well. One such common insurance coverage is the uninsured motorists’ coverage. This is often confused with underinsured motorists’ coverage. Uninsured motorists’ coverage is used in case you are involved in an accident with a motorist who is not insured. This insurance policy will help you cover any costs incurred in the accident. Underinsured motorists’ coverage is similar. This policy will cover the costs of any damage incurred in case you are involved in an accident with a motorist who does not have adequate insurance.
The next kind of insurance would be physical damage insurance policy. There are two kinds of physical damage policies. They are Collision and comprehensive insurance policy. Collision is a policy that will help you cover the costs of repairing your car in case you are in an accident. If you are in an accident, minimum liability will only pay for the other person’s medical bills and cars. Your car is not covered by that policy. At such a time collision will help you pay for any repair work or even replacement of your car. Some policies even have an option of covering lost wages. Comprehensive policy will cover any damage incurred by the car when it has not been in an accident. This will cover the costs of any damages when the car is damaged by natural agents such as hail or snow or even torrential rain. It will also cover the damages if you car has been vandalised. It will also cover damages in case of theft.