Most Louisiana natives know the damage a hurricane can cause; next to Texas and Florida, it's the state that sees the most hurricane activity. This damage tends to extend to the pocketbook as well; Louisiana also consistently ranks as one of the most expensive states to insure both cars and homes.
Louisiana Insurance Rates for Cars
Louisiana law requires drivers to have a minimum of liability insurance in order to legally drive their vehicles. This means that in the event you cause an accident, your insurance will cover the medical and repair costs of the others involved.
State minimums include bodily injury limits of $15,000 per driver and $30,000 per accident, and $25,000 for property damage. These are absolute minimums, however, and don't cover the repair costs of your own vehicle. The best protection for your car and your own assets will include not only increased liability limits (many insurance experts recommend $100,000/$300,000 for bodily injury and $50,000 for property damage), but the following as well:
- Comprehensive. If your car is flooded by hurricane waters, damaged by a hailstorm, stolen, or needs a new windshield, comprehensive coverage will cover the costs after your deductible.
- Collision. Your own car repairs will be covered by this type of insurance after an accident you cause. Many auto lenders require collision and comprehensive insurance.
- Uninsured/underinsured. With 12% of drivers in Louisiana uninsured and 40% insured at minimum levels, this type of insurance could really come in handy. For example, if your brand new Lamborghini is hit by a driver who has the minimum $25,000 in property damage, chances are $25,000 won't be enough to cover damages. With uninsured/underinsured, your own insurance will pick up the costs.
Louisiana Insurance Rates for Homeowners
While there are numerous factors that go into the cost of homeowner premiums, such as real estate values and construction costs, the main reason homeowners insurance in Louisiana is so costly is a result of the extensive damage that hurricanes cause.
As you shop around for Louisiana insurance, there is one important thing to remember—flood and hurricane insurance are not included in homeowner policies and must be purchased additionally. Many Louisiana residents discovered this the hard way after hurricane Katrina when they found their policies did not cover hurricane damage. The best way to fully protect your home against this is to make sure you purchase flood insurance as well as hurricane insurance.
It's also important to remember that your home's personal belongings, like clothing, electronics, and so forth, are not covered in homeowners insurance or flood insurance policies. You must purchase additional contents insurance to cover your home's contents. Renters insurance, also a good idea, also covers the contents of the home or apartment you rent.
Saving on Louisiana Insurance Rates
Many people mistakenly believe that insurance rates are the same across the board. This is not the case; insurance rates vary widely from company to company. The best way to find the best deal is to shop around and compare rates, and the easiest, fastest way to do this is through localinsurance.com. You can find Louisiana insurance rates for all types of insurance for free, then compare them to ensure you are getting the best coverage at the best price.
