Louisiana Drivers Are Unhappy with Quiet Rise in Car Insurance Rates

While people across Louisiana were celebrating the New Year on January 1, few noticed the change to their car insurance rates that happened when 2010 began. While legislation approved the increase in liability car insurance coverage required by the state back in 2008, most insurance companies didn’t bother telling their policyholders that they would see a small increase in their premium.

Louisiana drivers were required to carry at least $10,000 in bodily injury per person with $20,000 coverage per accident, and $10,000 in property damage liability coverage before the increase. Now all drivers need $15,000 per person and $30,000 per accident for bodily injury liability and $25,000 for property damage liability coverage to meet state requirements.

The previous liability requirements were enforced for 30 years, so lawmakers say the increase is to keep in line with the rising costs of claims, medical expenses and repair costs that insurance companies pay when policyholders file a claim.

Louisiana drivers can expect to pay on average $20 a month more on their car insurance policy. For drivers who already carried the new requirements for liability coverage or more, there will be no increase to the premium, but with around 1 million drivers in the state carrying only the minimum required liability coverage, these drivers are likely unhappy with their rate hike.

In a time of economic uncertainty and all time high unemployment rates, insurance companies are liable to be getting an earful from these Louisiana drivers.

How to Save in Spite of the Hike

While each driver is required by law to carry at least the minimum amount of liability car insurance coverage, there are a few ways to cut down on the increased rate.

1. Uninsured Motorist Coverage. By default, a policyholder’s uninsured motorist coverage will go up when liability coverage goes up. However, you can contact your car insurance agent and request it to stay the same or be lowered to save a few dollars on your policy.
2. Look at Your Extras. Many people don’t really look at their coverage. Take the time to see what kind of insurance coverage you have, and remove things that aren’t necessary like towing or roadside assistance. Consider lowering your comprehensive and collision coverage, especially if you have a car that is seven years old or older.
3. Raise Your Deductible. Getting a higher deductible will save you money on your premium, but make sure you are able to cover it should you need to get your car repaired after an accident. It’s a good idea to put the deductible amount away in savings so that you can readily access it should you need it.

Louisiana is likely not the only state that will see increases to the required liability coverage over the next few years. Educate yourself by staying informed of the latest car insurance news and regulations for your state so that you can prepare if you will see an increase in your car insurance rate. If you have questions about your coverage or any insurance legislation you don’t understand, contact your car insurance agent.