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Auto insurance. Louisiana.
What do I do first?
Shop around for the policy that is right for you.
Do not buy the first policy you hear about.
Get quotes from several companies before you sign an
application and pay a premium.
Be aware of insurance scam artists and unauthorized
insurance operations.
Buy only from authorized insurance companies and
producers. Unauthorized insurance operations are illegal and
their policyholders are unprotected if the company goes
broke.
Louisiana law requires that all registered owners of
an automobile carry liability insurance. Uninsured motorists
are subject to penalties such as fines, limited recovery
of damages, and impoundment of the uninsured vehicle.
Motorists who fail to provide proof of insurance
can have their vehicles immediately impounded or have
their license plates removed and a yellow sticker affixed to
the back windshield of the vehicle. The motorist is then
given three days to provide proof of insurance to the Office
of Motor Vehicles. After three days, if the motorist is
stopped again, the officer can impound his or her vehicle
until proof of insurance is given and all towing and reinstatement
fees are paid. The fines range from $75 to $100
on the first conviction, $100 to $250 on the second conviction
and up to $700 on each conviction after that.
The law known as "No
Pay, No Play" prohibits uninsured
motorists from collecting
the first $10,000 in property
damages and the first $10,000
in personal injuries regardless of
who causes the accident. This law also includes a provision
that may allow you to waive your right to make a legal
claim for pain and suffering if you buy economic-only uninsured
motorist coverage.
What kinds of discounts can I get?
- Your age. Generally, single male drivers under 25 and
female drivers under 21 have much higher insurance costs
than other drivers.
- Where you live. Urban areas have a higher incidence
of accidents and auto thefts than rural areas, so urban rates
tend to be higher.
- Type of car. Luxury, sports and high-performance cars
have the highest comprehensive and collision rates.
- Your deductibles. A deductible is your share of the
cost of comprehensive or collision coverage. If you opt
for a high deductible, your premiums will be lower. For
example, buying collision coverage with a $500 deductible
will cost less than the same coverage with a $250 deductible.
- Your driving record. If you have a good driving record,
some companies offer a discount. Tickets and at-fault accidents
can mean higher premiums.
- You are often eligible for a
discount under a "multi-car"
plan if you insure two or more
cars with the same insurance
company.
- You may get an auto insurance discount if you have life
or homeowners insurance with the same company.
- Most Louisiana insurance companies will give discounts
to full-time students with a B average or higher. Farmers
and senior citizens may also qualify for discounts.
- Some companies may reduce your liability and collision
premiums if you take a defensive driving course. Teenagers
who have taken driver education may get a similar discount.
You may be entitled to a discount if you have extra
safety features on your vehicle. Examples are anti-lock
brakes, anti-theft devices and air bags.
If you would like to check on a company, call the
Louisiana Department of Insurance.
Toll Free, statewide: 1-800-259-5300
Baton Rouge: (225)342-0895
Am I buying from a legitimate company?
Ask about a company's or producer's license
status.
Will the company be around to pay my
claims? Ask for the company's financial
letter grade from at least one nationwide
rating firm.
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