Current average auto insurance is about $1,755 per year in Louisiana. This is $300 more than the national average of $1,420. However, due to intense competition recently among leading car insurance companies doing business here, you can now get very low cost car insurance rates if you were to compare insurance quotes online and make the insurance companies compete for your business. It is common knowledge now that auto insurance companies offer better rates online and even better at comparison websites like ours where they have no choice but to offer their lowest quotes in order to get new business. By informing and educating consumers regarding the state specific auto insurance rules and regulations, we make the auto insurance purchase process more transparent and efficient for the consumers.
Minimum Car Insurance Requirements in Louisiana
The state of Louisiana has instated couple of very important rules and regulations to keep you the consumer safe and covered in case you suffered the misfortune of having a vehicular accident. The requirements were created to assure that each person driving was maintaining a form of financial responsibility, and creating a safe haven for every injured party if they were in an accident.
Louisiana car insurance minimum requirements are not high. The standard is 10/20/10, one of the lowest in the nation. This means that your insurance will pay $10,000 for the treatment of injuries from the accident to the person you hurt, to a maximum of $20,000 for every person in the accident. Your insurance will also pay $10,000 to repair damages to any property that collided with or was hit by your car.
In actuality, this is not much in the way of coverage. When the minimums are this low you are better off seeking a policy that is above the minimum. If you have an accident and the costs to the other party are in the tens of thousands than you will end up paying the balance out of your own pocket. One severe accident and you will find yourself without much of your personal property or any of your savings as they have to be liquidated or turned over to pay off the expenses that were incurred.
Louisiana does not take a person’s neglecting to get their car insurance lightly. If you are pulled over and do not have proof of insurance your car will be immediate impounded. This can be extremely costly as the impound yard charges by the day to keep your car locked up. There are times when they will not impound the car, but do not think you are getting out of not having the required documentation in your car at all times. The officer will remove your license plates and place yellow stickers on your back window. This shouts to every other officer that you may encounter on your way home from this incident that you do not have proof of car insurance. Three days from the time that this happens you must show proof that you have active car insurance to the Office of Motor Vehicles. Only after this time are you allowed to have your car back if it was impounded, or remove the tags in cases where it was not taken from you.
Along with the impound fees, you will have to pay for the towing of your car and fines. This ranges from $75 for a first offense to $700 if you commit the infraction a third time. Keep your expenses low by buying the proper insurance for your vehicle and maintaining as long as you own it.
How to find cheap car insurance rates in Louisiana
Compare rates from top companies and you are bound to find the lowest rates. Normally, but not always, larger companies tend to have lower rates than smaller companies due to their economies of scale. For instance in Louisiana, Liberty Mutual is one of the largest and the best rated auto insurer in the state, thus able to provide lower rates than many other smaller insurance companies in Louisiana.