The state of Louisiana has made auto insurance mandatory along with many states of the United States of America. Louisiana follows the tort system of rules which states that in case of an accident an investigation should be conducted. A person must be found responsible and he and his insurance company should be responsible for paying for any and all the damages caused due to the accident. Mandatory auto insurance is another step to ensure each and every driver on the road has financial responsibility. This rule is to ensure that each person can pay for the damages he might cause.
Every state fixes a minimum liability. This is the minimum amount that a person has to be insured for. The minimum liability fixed by the state of Louisiana is fixed at 10/20/10. This stands for a minimum of ten thousand dollars for bodily injury per person and a total of twenty thousand dollars per accident covering twp persons. It also includes any property damage for ten thousand dollars. Property damage will cover any damages caused to the car including repair and replacements. It will also cover any damages caused to any buildings, lamp posts and fences. Bodily injury will cover any medical costs incurred due to the injury. It will also cover lost wages, if any.
Insurance has been made mandatory and is not cheap. The amount fixed by the government is only the minimum. An accident will usually cost a lot more money and you need to be insured for larger sums. However, it does not mean insurance has to cost a bomb. There are many discounts available. This article tries to provide you some tips to help you reduce the cost of insurance.
The first advice is to compare shop. There are many different insurance vendors in the market today. Each one will offer different services at different prices. You will be able to save a lot of money just by carefully choosing the insurance company. Many houses have more than one vehicle. If you get all the vehicles insured with the same company, you will definitely get a multi vehicle insurance discount.
If you have a student in your house, you will be able to get a discount on your auto insurance if the student gets good grades. This acts as an incentive to encourage the student to keep his grades up. Ty and maintain clean record. A good driving record will ensure you get lower premiums and discounts. You can also go for the driver education classes that are held by the DMV. This is bound to earn some discounts for you.
You can also make your car safe. Air bags and automatic seat belts will definitely get you a discount. You can also get a discount by coupling other insurances with your auto insurance. Getting a health insurance along with auto insurance will definitely get you a discount. But apart from getting you a discount, it will provide you with the opportunity of planning your finances better. IF you have a good health insurance policy, you do not need to worry about medical benefits in your auto insurance.