Types of Auto Insurance Coverage Available to You

            Let’s face it, insurance is not cheap.  Insurance is something you hope you never need, but when you do, you need it.  Auto insurance is no different that any other type of insurance – it costs more than you would like to pay and it can be complicated to understand.  Calling around to find who has the cheapest rates is not the best method and you may be guilty of having done this before but read on to understand the importance of auto insurance and the different “add-ons” you should purchase and why purchasing from a company that has a strong presence in the state and has been in business for many years is important.

            Where to and how to shop for coverage

            You should only purchase from authorized insurance companies and produces in the state.  Those who are not may be a scam, unauthorized companies are illegal in Louisiana and if the company goes broke, you may have no coverage.  Speaking with friends and family is a great place to start, word of mouth.  Also look online.  Go to,  https://www.ldi.la.gov/home to research companies to determine if they are: legitimate, authorized by the state, and if the company has any red flags that the Department of Insurance may warn the public about.

            “Full Coverage” is a Joke – Liability Only

            “I have full coverage” has a good ring to it, but most people have no idea that “full coverage” is really the Louisiana minimum auto insurance coverage required by law.  The minimum auto insurance coverage in Louisiana is liability coverage only, meaning you are only purchasing coverage to protect you if you injure someone else or cause damage to their property.  Those limits are known as 15/30/25 – a limit of $15,000 per person injured, not to exceed a total payment of $30,000 to all those injured, and $25,000 for property damage.  So, if you only have the minimum limits, then you have nothing protecting you if you are injured or your vehicle if it is damaged. 

            This liability only coverage will also extend coverage to any licensed driver you give permission to use your vehicle.  It also applies when you are driving rental cars or another person’s vehicle, when you have their permission. 

            “Add-on:” Medical Payment Coverage

            This is an inexpensive add-on to the minimum limits coverage and is the first step in protecting you if you are injured, no matter who is to blame.  This feature will pay for medical expenses (ambulance, ER, doctors, etc.) up to the policy dollar limits you have purchased.  It will also help with funeral expenses.  This coverage applies to you and anyone in your vehicle.

            “Add-on:” Uninsured/Underinsured Motorist Coverage:

            This is coverage that can protect you, your occupants, and your vehicle.  But this is a tricky area of coverage because there are different types of UM.  Generally, UM or UIM coverage will pay benefits to you if you are involved in a crash with an at fault driver who has no insurance or not enough insurance, as well as any occupants in your vehicle.  This will include medical bills, lost wages, property damage, and general damages (pain and suffering).  It also provides coverage in a hit and run crash. 

            “Add-on:”Uninsured/Underinsured Motorist Economic Only Coverage:

            This coverage is similar to UM/UIM coverage, but has one major difference and for this reason, we do not recommend it.  This “add-on” does not include coverage for compensation of your pain and suffering, loss of enjoyment of life, depression, anxiety, stress, etc. – what is called “general damages” and something we believe to be the most significant type of injury someone can suffer.  It is available.  We do not recommend it, but it is a few dollars cheaper than full UM/UIM coverage.

            “Add-on:” Uninsured/Underinsured Motorist Property Damage Coverage:

            As the name implies, this “add-on” will provide property damage coverage if you are involved in a crash with an uninsured or underinsured driver.  A deductible will exist and similar to liability coverage, there are limits that your coverage can be limited to, such as $25,000 or $50,000.  You can purchase a higher level of coverage.  But keep in mind that if you have collision coverage, this coverage may not be available.

            “Add-on:” Towing and Rental:

            As the name implies, this “add-on” will cover towing charges, including storage, and rental if you are involved in a crash.  The rental coverage will have a daily limit for how much will be covered for a temporary replacement vehicle and a max length of days that would be covered. 

            “Add-on:” Comprehensive Coverage:

            Comprehensive coverage pays for damage to your vehicle from situations like falling trees or branches, flood, fire, vandalism, theft, or a variety of named events specific to each policy.  This would cover damages that are not a result of a vehicle crash. This coverage also has a deductible. 

            “Add-on:” Collision Coverage:

            Collision covers just what you think, collision damage when you are involved in a crash with another vehicle.  It does not matter who would be at fault.  This coverage also has a deductible. 

            As a side note, do not think that because your car is older or not worth much that you should drop comprehensive and collision coverage.  Many people believe that it is something that is not needed.  But think about this, vehicle repairs are expensive, and crashes happen daily.  Do you want to take the chance that if your car is damaged that you will be able to afford to repair it properly?  Think of all the cars we see driving around with damage that the owner simply has not fixed.  What do you believe the resale value looks like.  Insurance for your vehicle is to protect your property and often time vehicles are the most expensive thing a person owns.  Think twice about not purchasing or dropping this coverage.

            Risks of Driving Without Auto Insurance:

            Driving without insurance is illegal and irresponsible.  Louisiana law requires all vehicle owners to maintain liability insurance coverage.  That is the MINIMUM coverage.  If you stopped and do not have valid insurance, you may receive a fine of up to $1,000 if you are knowingly driving without insurance and lying about having coverage.  Simply not having proof of insurance or letting your policy lapse may also result in penalties.  It is possible to have your license suspended and your car impounded. 

            If you are involved in a crash and do not have insurance coverage, you will suffer further losses but not being able to recover the first $15,000 of your claim’s value and $25,000 of your vehicle’s damages.  This is commonly referred to as “No Pay, No Play” and it does not matter who is at fault.