Consumer’s Guide to Auto Insurance PDF Manual
Buy only from authorized insurance companies and producers. Unauthorized insurance operations are illegal and their policyholders are unprotected if the company goes broke. If you would like to check on a company, call the Louisiana Department of Insurance. See page 11 for all of the information you need to contact us. Will my teenager be covered when he goes to college out of state? If your teenager is not taking permanent residence in that state, most companies will not require you to make any changes to your policy. Is there another way to shop around for auto insurance other than calling every company in the phone book?
You can start by getting your free copy of the “Auto Rate Comparison Guide,” published by the Department of Insurance. It compares auto rates among the state’s top insurers. However, you may find that a company not included can best provide the coverage you need. If I let my friend drive my car and she has an accident, will she be covered? As long as your friend has the owner’s permission to drive the car, she is covered under the owner’s policy. The exception would be a person who had been excluded from coverage under that policy.
What insurance do I have to buy?
Under Louisiana law, you must carry liability coverage on any automobile you own. This coverage pays for property damages or personal injury for which you may be legally responsible, up to your policy’s dollar limits. In Louisiana, each vehicle is required to have 10/20/10 liability limits. Those limits provide payments of $10,000 for bodily injury to one person, $20,000 for bodily injury to more than one person in a single accident, and $10,000 coverage for damage to someone else’s vehicle or other property. Liability insurance covers bodily injury or property damage caused by you, your family members, and others driving your vehicle with your permission. You and your family members are also covered when driving another person’s automobile including rental private passenger vehicles. Company cars and other non-owned cars regularly available to you are not covered.
What about other coverages?
Medical payments coverage pays for medical expenses for a designated period of time following the accident, up to your policy’s dollar limits and it includes funeral expenses. Payments are made regardless of who is to blame for the accident. Medical payments covers you, your family members and other passengers in your car.
Uninsured/Underinsured motorist coverage pays benefits to you if your car is hit by a driver who has no insurance or too little insurance to pay for the full amount of your injuries. Any bodily injury you or an occupant of your vehicle suffers due to an accident caused by another driver is covered under this policy. Hit-and-run drivers may be classified as uninsured motorists if there is a disinterested witness to the accident. You may choose to purchase uninsured motorist economic-only coverage. This coverage is the same as uninsured motorist coverage except that it covers only the actual costs of injuries to you and the occupants of yourvehicle. Pain and suffering are not included under this coverage.
Uninsured/Underinsured motorist property damage coverage provides for repairs to your vehicle if you are in an accident with an uninsured driver. A $250 deductible applies under this coverage, and your recovery is limited to $10,000 or the actual cash value of the vehicle, whichever is less. If your policy includes collision insurance, this coverage is not available.
Download Consumer’s Guide to Auto Insurance PDF Manual
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