What Type of Auto Insurance Do I Need?

Liability Insurance

Louisiana, like many other states require that drivers carry automobile liability insurance. If you are to blame for an automobile accident, your liability insurance may be required to pay for the other person’s property damages and personal injuries up to your limits of coverage. Louisiana law requires that drivers carry a minimal of $10,000 in automobile liability coverage. If the other driver is at fault then his/her liability insurance policy pays you for your losses, including property damages and personal injuries. Your losses depend on the nature and extent of your injury and not the limits of the offending driver’s policy.

If you loan your car to someone (who is not specifically excluded under the policy) and they have an “at fault” accident, your liability insurance may be required to pay up to its policy limits. Unlicensed drivers may not be covered under the terms of your policy.

Collision Coverage

Your own collision coverage will pay for the property damage done to your vehicle, no matter who is at fault. Your vehicle may be considered a total loss if the cost of repairs exceed or reach a significant percentage of the vehicle’s value. That means that your insurance company may choose to pay for the vehicle rather than pay for the repairs. There is a difference between the remaining loan value of a vehicle and its market value. Sometimes your insurance company will total a vehicle but leave a remaining balance on the loan.

Generally collision coverage has a deductible that you must pay in addition to what your insurance policy pays. Your automobile insurance company may not offer collision coverage on a very old vehicle. You should keep the collision coverage in place if you can not afford to purchase another vehicle in the event of an accident.

Medical Payments Coverage

If you purchased medical payments coverage it will pay for medical expenses incurred by you and your passengers in the event of an accident. Medical payments, like liability coverage, has its limits and those limits are determined by your individual policy. This coverage can be used in place of your personal health insurance policy or to supplement your other healthcare coverage.

Rental Car Coverage

This coverage is used to provide you with transportation while your car is being repaired. If you do not have a substitute vehicle and losing your vehicle will cause significant financial hardship you may wish to consider purchasing this coverage. Rental coverage may not pay for the entire rental vehicle and is usually limited to a specific amount per day of rental charges.

Underinsured/Uninsured Motorist Coverage

This coverage will pay you for your own personal injuries and damages in the event the other driver is uninsured or does not have enough insurance coverage to pay for your losses. Your own underinsured motorists coverage (UM Coverage) may be used to cover amounts over and above the limits of the other persons policy.


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The contents of this site are for informational purposes only and not to be taken as legal advice. If you are in need of any advice or have any questions, please contact us and we would be happy to help. If you need immediate medical attention please call 911 or your doctor.

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