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Louisiana Car Insurance: Coverage and Costs Go Up
Louisiana's minimum requirements for motor vehicle insurance went up January 1. With the rise in cost comes better coverage protecting drivers across the state.
February 06, 2010 /Personal Finance PR News/ -- Louisiana Car Insurance: Coverage and Costs Go Up
There's never a good time to raise prices. But the benefits of the recent rise in car insurance rates for many Louisianans outweigh the costs, according to Louisiana Insurance Commissioner Jim Donelon.
On January 1, a new state law went into effect, raising insurance rates for a million Louisianans who have the required minimum liability coverage. The new law requires motorists to have at least $15,000 in insurance coverage for injury or death to one person in an accident; $30,000 of coverage for injury or death to more than one person; and $25,000 of coverage for damage, in an accident, to the property of other people.
The law had previously required $10,000 for death or injury to a person; $20,000 for death or injury to more than one person; and $10,000 coverage for property damage.
The actuary for the Louisiana Department of Insurance says that most drivers carrying the legal minimums of motor vehicle insurance will see their yearly premiums rise about $71 a year, or just under six dollars per month.
In exchange for that slight rise in prices, drivers get significantly more protection in accidents.
Donelon told the Associated Press that the benefits are worth the bump in costs. "Certainly there are thousands of drivers out there who can ill-afford this additional cost. That's always the case. I think that's outweighed by the tens of thousands who are left uncompensated by the damage that minimally insured drivers do," he said.
The minimum levels of insurance hadn't been raised in nearly 30 years, while medical costs have skyrocketed and auto repair costs have risen significantly over that time.
Of the approximately 2.5 million vehicles insured in Louisiana, about 40 percent carry the minimum liability coverage required.
Opponents of raising the required insurance claimed it would force some drivers on fixed incomes to drop insurance in a state where 12 percent of motor vehicles aren't covered by insurance. However, proponents of the law said there was no indication that a significant number of drivers would drop insurance. For more information on this new requirement and the effect if may have on you, if you've been injured due to an auto accident, please speak to a personal injury attorney in your area.
Article provided by Law Offices of Tim L. Fields
Visit us at www.timfieldslaw.com
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