Minimum Insurance Requirement Raised In Louisiana

Timothy Young
Timothy Young
Contributor
Posted by Timothy YoungApril 22, 2010 7:39 AM

A new law came into effect on January 1st of this year in Louisiana that will affect everyone with a driver's license. Now, instead of liability limits of $10,000 for bodily injury to one person, $20,000 for bodily injury to multiple people, and $10,000 for property damage liability (also known as 10/20/10), drivers have to purchase at least 15/30/25.

Despite the fact that the laws were approved in 2008, many of the 1 million drivers that this new legislation affected were not notified of the change by their insurance companies, and so may not have known about the increase until they saw their bill. But this is a big change to auto insurance policies in Louisiana, and one that I believe is very beneficial.

Car accidents are not only stressful and dangerous, but they are also very expensive. Not only do you have to pay to have the vehicles repaired, but you also have to pay for your medical bills and make up for any wages you lose while you are injured and out of work.

While car insurance usually helps offset these expenses, it doesn't always cover them completely. The worst situation to be in is the one where the accident wasn't your fault, but the other driver's insurance can't cover the expenses caused by the accident, and so you have to pay out of pocket for something that you didn't do.

No one plans on getting into a car accident, but if you should find yourself in that situation, you shouldn't have to add financial stress to the list of things you will already be worrying about. That is why I think this new law will benefit many drivers, not only by increasing their insurance funds, but also by ensuring that "the other driver" is prepared to pay for their own mistakes. You can learn more about laws for automobiles and trucks in Louisiana by visiting here.

1 Comment

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Mike BryantInjury Board Attorney Member
Posted by Mike Bryant
April 23, 2010 12:10 AM

Great move for the consumers. How often do people have more coverage after a collision that teaches them to what they need for coverage. It's sad that the insurance companies don't spend more time on educating people about coverages, instead of scare tactics and fear mongering.

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