Louisiana Auto Insurance

Louisiana auto insurance requirements start with one basic rule: if you drive here, you need liability coverage. That part is simple enough. But understanding exactly what coverage you need, what the state minimums actually protect, and where gaps might leave you financially exposed takes a closer look. Here's what every Louisiana driver should know.

Louisiana's Minimum Liability Requirements

Louisiana law requires every registered vehicle to carry liability insurance. The state minimums are commonly written as 15/30/25, which breaks down like this:

• $15,000 in bodily injury coverage per person

• $30,000 in bodily injury coverage per accident

• $25,000 in property damage coverage per accident

These are the absolute minimums. If you're caught driving without at least this level of coverage, you could face fines, license suspension, and even vehicle impoundment. Louisiana takes uninsured driving seriously, and penalties get steeper with repeat offenses.

What Those Numbers Actually Mean

Let's say you cause an accident that injures two people. Under the 15/30/25 minimums, your insurance would pay up to $15,000 for each injured person, but no more than $30,000 total for all injuries combined. It would also cover up to $25,000 in damage to the other driver's vehicle or property.

Anything beyond those limits comes out of your pocket. And in a state where the average emergency room visit can easily exceed $15,000, those minimums can run out fast.

Why Minimums May Not Be Enough

Louisiana consistently ranks among the most expensive states for auto insurance, partly because accident rates and repair costs continue to climb. A single serious accident can result in medical bills, lost wages, and vehicle damage that far exceed the 15/30/25 limits.

If a court determines you owe more than your policy covers, your personal assets, including savings, property, and future wages, could be at risk. We break down the specific scenarios and dollar amounts in our article on why state minimum auto insurance isn't enough. Most insurance professionals recommend carrying at least 50/100/50 or even 100/300/100 if your budget allows. You should also consider an umbrella policy for an extra layer of protection above your auto and home limits. The price difference between minimum coverage and a more protective policy is often smaller than people expect.

Optional Coverages Worth Considering

Beyond liability, several types of coverage can make a real difference when something goes wrong. Keep in mind that even with these coverages, your policy has exclusions worth knowing about.

Collision Coverage

This pays to repair or replace your own vehicle after an accident, regardless of who was at fault. If you're financing or leasing your car, your lender will almost certainly require it.

Comprehensive Coverage

Comprehensive covers damage from events outside of a collision, like theft, hail, flooding, falling trees, and animal strikes. Given Louisiana's weather patterns, including hurricane season and heavy storms, this coverage is particularly worth considering.

Uninsured/Underinsured Motorist (UM/UIM)

Louisiana has one of the highest uninsured driver rates in the country. Some estimates put it above 10%. UM/UIM coverage protects you if you're hit by a driver who has no insurance or not enough insurance to cover your damages. It's one of the most important coverages you can carry on your auto policy.

Medical Payments Coverage

Medical payments coverage, sometimes called MedPay, helps pay for medical expenses for you and your passengers after an accident, regardless of fault. It can cover hospital bills, surgery, and even funeral costs. It works alongside your health insurance and can help fill gaps in coverage.

Louisiana's Fault System

Louisiana operates under a fault-based system for auto accidents. That means the driver who caused the accident is responsible for the other party's damages. You can file a claim through the at-fault driver's insurer, through your own insurer, or through the court system.

Louisiana also uses a comparative fault rule. If you're found partially at fault for an accident, your compensation is reduced by your percentage of fault. For example, if you're 20% at fault and your damages total $10,000, you would receive $8,000. This makes having solid coverage on your own policy even more important, because your payout from the other driver's insurer could be reduced.

Factors That Affect Your Rates

Insurance companies look at a range of factors when setting your premium. Some of the most common include:

• Driving record, including accidents, tickets, and DUI history

• Age and experience, with younger drivers typically paying more

• Location within Louisiana, since urban areas tend to have higher rates

• Credit score, which Louisiana insurers are allowed to use in pricing

• Vehicle type, including its age, value, safety ratings, and repair costs

• Coverage levels and deductibles you choose

• Annual mileage, since more time on the road means more risk

Tips for Saving on Auto Insurance

Finding affordable auto insurance in Louisiana doesn't mean you have to settle for bare minimum coverage. There are several practical ways to bring your premium down. We go deeper on this in our article on saving money on car insurance in Louisiana.

• Bundle your policies. Carrying your home and auto insurance with the same company often unlocks a multi-policydiscount.

• Raise your deductible. Increasing your deductible from $500 to $1,000 can lower your premium noticeably. Just make sure you can afford the higher out-of-pocket cost if you need to file a claim.

• Ask about discounts. Many carriers offer discounts for safe driving records, defensive driving courses, good grades for student drivers, and anti-theft devices.

• Review your policy annually. Your needs change over time. A vehicle that once needed comprehensive and collision coverage may only need liability as it ages and depreciates.

• Compare quotes from multiple carriers. Rates can vary significantly between companies for the same level of coverage. Working with an independent agent gives you access to multiple options without having to shop around on your own.

Find the Right Coverage for Your Situation

Auto insurance isn't one-size-fits-all, and the cheapest policy isn't always the smartest choice. The right coverage depends on what you drive, how much you drive, and what you can afford to lose in a worst-case scenario.

MEDICARE PREMIUMS AND DEDUCTIBLES RAISE SLIGHTLY IN 2021

Premiums and deductibles for 2021 Medicare Parts A and B will marginally increase, according to the Centers for Medicare & Medicaid Services (CMS).

New rates for 2021 include:

• The Medicare Part B standard premium will be $148.50, an increase of $3.90.

• The Part B annual deductible will be $203, an increase of $5.

• The Medicare Part A inpatient hospital deductible will be $1,484, an increase of $76.

• Medicare Part A coinsurance will be $371 per day for days 61-90, an increase of $19.

The Part B premiums and deductible reflect the provisions of the Continuing Appropriations Act, 2021 and Other Extensions Act (H.R. 8337).

According to CMS, the average 2021 premiums for Medicare Advantage plans are expected to decline 34.2 percent from 2017 while plan choices, benefits, and enrollment continue to increase. The Medicare Advantage average monthly premium will be the lowest in fourteen years (since 2007). Premiums and deductibles for Medicare Advantage and Medicare Part D Prescription Drug plans are already finalized and are unaffected by this announcement.

The Medicare Part A inpatient hospital deductible that beneficiaries will pay when admitted to the hospital will be $1,484 in 2021, an increase of $76 from $1,408 in 2020. The Part A inpatient hospital deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period. In 2021, beneficiaries must pay a coinsurance amount of $371 per day for the 61stthrough 90th day of a hospitalization ($352 in 2020) in a benefit period and $742 per day for lifetime reserve days ($704 in 2020). For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will be $185.50 in 2021 ($176.00 in 2020).

Our agents at Apron Agencies can help you review all of your Medicare choices in plan and supplements. We will take the time to make sure you understand what insurance you have and how well you will be covered in the event of a claim.

ARE YOU READY TO SAVE MONEY AND GET THE BEST INSURANCE COVERAGE AVAILABLE? TAKE ADVANTAGE OF OUR FREE HOUSEHOLD INSURANCE CHECKUP TODAY! 

WHAT IS AN INSURANCE DECLARATION PAGE?

An Insurance Declaration Page (DEC Sheet) is usually the first page of your insurance policy and often summarizes your coverage by providing the following information:

Who is insured?

What is insured?

How it is insured (what type of coverage)?

How much it is insured for (policy limits)?

How long the insurance policy is valid for (effective and expiration dates)?

Looking through all the pages to understand the basics of your insurance policy would be complicated. The insurance DEC page provides the insurance policyholder with a basic overview of their insurance policy in one area so everything is clearly outlined as well as the costs associated with the coverage listed on the page.

The Insurance Declaration page is the most important part of your insurance policy because:

1. It dictates what insurance coverage you have and how your claim will be paid;

2. It tells you what the limits are for each section of the policy; and

3. It includes the premiums charged for the coverage you have purchased.

The declaration page is then followed by the second most important part of your policy, the policy wording which then defines each of the terms found on the DEC page and how they apply in a claim.

Our agents at Apron Agencies can help you review all the sections of your insurance DEC pages and make sure you understand what insurance you have and how well you will be covered in the event of a claim.

ARE YOU READY TO SAVE MONEY AND GET THE BEST INSURANCE COVERAGE AVAILABLE? TAKE ADVANTAGE OF OUR FREE HOUSEHOLD INSURANCE CHECKUP TODAY! 

CHECK YOUR SOURCE FOR INFORMATION ABOUT MEDICARE

You can search the internet regarding any topic and find multiple sources for answers to your questions. There is an endless amount of articles and videos on all aspects of health insurance coverage, including Medicare.

But, how do you know whether the information you are reading is correct? How can you separate the correct information from the rest? Here are Apron Agencies 3 tips to ensure you are receiving accurate information.

1. Consider The Source of the Information - Besides the U. S. government’s official website that explains your choices for Medicare coverage, another great resource for information is the AARP website. This article provides essential information to help you choose your plan. When reading articles on the internet, consider whether the article is written by someone who is knowledgeable about in health care information.

2. Remember to check the facts - Don’t rely on a single source of information.  First, look for more than one reputable source on the same topic. Then take a few minutes to fact check what you’ve read.

3. Ask a Health Care Professional - Before you make any decisions that could impact your health, talk to a health care professional. Here is a list of Frequently Asked Questions. You can also call 1-800-MEDICARE (1-800-633-4227) to ask any questions.

Do you have questions about your Medicare coverage or want to find out more about supplemental plans, feel free to contact us as we would be happy to help.