Louisiana Increases Its Minimum Liability Coverage


The State of Louisiana has recently increased its auto insurance premium rates in response to the increase of the minimum liability coverage.

The minimum liability of Louisiana until last year was 10/20/10. Which means as a driver, you are required to be covered at least $10,000 per person, $20,000 coverage for all persons in the accident and the remaining $10,000 for property damages.

However, these rates cranked up early this year and drivers are now required to carry at least $15,000 for the liability coverage causing injury or death to one person, $30,000 total accident and $ 25,000 for property damages sustained during the accident.

This means that for drivers who have the minimum liability coverage could expect an increase of $71 this year, which should be around $6 a month. Although this is not a huge increase, but for many drivers who are still suffering from the economic depression, will be unhappy with this progress.

While many drivers are continually seeking for ways to save money on their auto insurance premiums, insurance providers, on the other hand, believed that this increase necessary to provide better service and protection to drivers and their passengers.

The move to increase the coverage was initiated after many uncompensated accidents were reported due to the insufficient coverage by which the drivers carried only minimum coverage. Many of the accidents whose expenses involve more than $10,000 per person, $20,000 for all persons and $10,000 for property damages set last year, were simply not good enough. This year, insurance companies are hoping that the extra coverage could provide additional benefits to medical, health and property expenses.

For the past decades, the cost of repairs and medical expenses has risen significantly. However, the cost of the minimum liability coverage has not and therefore, becomes ineffective in helping the victims. In order to provide better coverage to the aggravated parties, the need to increase the minimum coverage is only but appropriate.

There are about 2.5 million insured vehicles in the State of Louisiana. It is estimated that about 40% of those carry only the minimum liability coverage and a shocking 12% of the drivers in Louisiana do not have any insurance at all due to the already high cost. Although the increase of the insurance premium is rather small, many still feared that the existing 12% increase this year, could force more drivers to drop their coverage because they could no longer afford the insurance. However, there is still no substantial information to back up this claim as of yet. 

Things you can do to save money on auto insurance in Louisiana

As a driver, it is always a good idea to carry more than what the state has required you to have.  Having a coverage that is more than the minimum liability coverage will give you a peace of mind in case of accidents, because you know that you will be able to pay the medical bills and property damages when you are at-fault.

If you are having difficulty meeting the ends, try to check your policy if there are ways you can save your money. For instance, increasing your deductible will lower down your rate. Still, the best way to do this is to talk to your insurance agent and ask for suggestions as to how you can save money from your insurance policy.