Louisiana – Factors that Affect Auto Insurance Rates


The state of Louisiana has made auto insurance mandatory. The minimum liability set by the state is ten thousand dollars per person for bodily injury, twenty thousand dollars in total covering two people for bodily injury and ten thousand dollars for property damage. This is of the form 10/20/10. This is going to be increased to fifteen thousand dollars per person for bodily injury, thirty thousand dollars for bodily injury in total covering two persons and property damage for twenty five thousand dollars. The change will be effective from the first of January, 2010. This, however, is the minimum amount set by the government. Most of the costs incurred in case of an accident will amount to more than these small amounts. The industry experts advise people to get insurances for much higher amounts.

Insurance is now mandatory and costs a lot. However, there are many factors that help us reduce our insurance rates. This article tries to list some of these factors and help you reduce your insurance rates.

There are mainly two types of factors that affect insurance rates. These are factors that you can change and factors that you cannot.

Among the factors that you cannot change is your age. Age plays a big role in the insurance rates you are charged. Statistically, drivers below twenty five are high risk. They are rash and high premiums will be charged. People above twenty five are considered to be stable drivers and the premiums charged are much lower. People above fifty and below sixty five are considered to be the safest. These people are charged the lowest premiums. Martial status can affect your rates as well. Insurance rates are lower for married people as they are considered to be very safe drivers in comparison to unmarried people. Gender plays an important role as well. Women are considered to be safe drivers statistically. Hence, they are charged very low premiums.

Among the factors you can change is your driving record. IF you have had a clean driving record for the past five years, you are considered to be low risk and you wile b charged low premiums. On the other hand, if you have had tickets and penalties, you will have a large premium. Your location will play a huge role too. Rural countryside car owners pay lower premiums as the chances of their being involved in accident is very low. Urban city dwellers, living in the middle of a metropolis, live amidst bustling traffic. The chances of these people being involved in an accident are very high. Therefore, they are charged very high premiums.

People living in an area with high crime rate have a higher chance of being victims of theft. Thus, their insurance premium will be higher. The number of claims will play a huge role too. People who do not claim for every single dent will have much lower premiums. It is a good idea to treat small damages out of your own pocket to reduce the insurance rates. A good credit score will also help you get low rates on your insurance.