The state known as the birth place of Jazz plays by its own tune for its Louisiana car insurance requirements.
|State Regulator Information||800-259-5300||www.ldi.state.la.us|
|Insurance Premium||Avg. Annual Premium: $ 1,971||National Average: $1,503|
|Mandatory Car Insurance Coverage||Bodily Injury Liability:$10k/20k
Property Damage Liability: $10k
Louisiana car insurance requirements take their residents over to a slightly different way of determining what insurance they need to be able to drive. Instead of a liability limits that are mandatory to be carried by all vehicles, Louisiana sets limits based on the weight of the vehicle. The state also gives the option of carrying combined single limits instead of split limits.
Louisiana Car Insurance by Weight
The amount of car insurance that you have to carry in the state of Louisiana is determined by how much your vehicle weighs. I was a little thrown back by this when I first saw it, but it makes complete sense. A heavier vehicle is likely to cause more damage to what it hits. It also takes a heavier vehicle longer to slow down, meaning that it will create a longer damage path than a lighter vehicle that can stop quicker.
By weight of vehicle (no, don’t include the people in it) here are the mandatory Louisiana car insurance requirements:
• 20,000 Pounds or Less- 15/30/25
• 20,001 to 50,000 Pounds – 25/50/25 or a single combined limit of $75,000
• 50,001 Pounds or Greater – 100/300/25 or a single combined limit of $300,000
All of these limits are for liability coverage. The first number in the xx/xx/xx is the liability coverage for bodily injury for a single person that you injure in an accident. The second number is the total amount that would be paid out in bodily injury claims for all of the people that you injure, that are not in your vehicle. The last number is the limit that your insurance company would pay up to for damages that you do to another person’s property.
Single Combined Limit for Louisiana Car Insurance
Single combined limits are available through your insurance company and are acceptable in most states. Having a single liability limit just is not something that is frequently done, so it is talked about very little. Louisiana is the first state that I have researched that outright approves of single combined limits as part of their listed mandatory insurance requirements.
A single combined limit for Louisiana car insurance is as simple as it sounds. Instead of breaking up the liability limits into different amounts for how much will cover what; the single limit covers everything up to the specified amount.
For example, say you caused an accident that caused $30,000 in damages to the other person’s vehicle and resulted in $10,000 in medical expenses. With the Louisiana car insurance minimum requirements of 15/30/25, the medical expenses would be paid, but you would have $5,000 not covered by your insurance company from the property damages. This $5,000 will come directly from you.
Now, if you had an insurance policy with a combined single limit of $50,000, all of it would be covered. Because the combined single limit policies don’t dictate how much it will pay for injuries as compared to property damage; all liability costs are under one limit.
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