Insurance is like a big bowl of gumbo: the ingredients are gratifying on their own, but blend them together and you have a delightful masterpiece. Sure, purchasing the State's minimum coverage will keep you legal, but adding protection can save you from the pungent taste of debt. Your Louisiana auto insurance rates will increase slightly by adding coverage, but they can save you in the long run. Get to know what coverages are available and assess whether or not you need to add a pinch of protection.

Louisiana Auto Insurance 101
Results from a 2010 National Association of Commissioners (NAIC) survey showed that Americans know little about insurance. The surveyed showed 54 percent of Americans do not realize credit history may be a factor when determining insurance premiums and 63 percent don't realize property stolen from an insured vehicle is not covered on an auto insurance policy. For those who are uncertain, insurance companies do look at credit scores to understand the risk in insuring an individual. The way you handle your finances is a good predictor of insurance claims, according to studies. Individuals with low scores tend to pay a bit more for their insurance. Additionally, property that is stolen from your vehicle is covered on your homeowners or renters insurance policy, not your auto insurance policy.

Avoid Perish
Your auto insurance policy must include minimum liability insurance covering each accident with $10,000 per injured person, $20,000 for total liability, and $10,000 for property damage. This type of coverage is referred to as 10/20/10. However, insurance companies recommend policyholders increase their liability coverage to at least $100,000 for each person and $300,000 for each incident. In the aforementioned 2010 survey, the NAIC concluded that 86 percent of Americans could not translate the last figure in 100/300/100 liability coverage. To clear up any confusion, the last figure corresponds to the amount your insurance company will pay for property damage in the event of an accident. You might be surprised by how little your Louisiana auto insurance rates increase by increasing your liability coverage.

Jazz Up Your Minimums
The Insurance Information Institute (I.I.I.) surmises one out of every seven drivers in the United States has no auto insurance. If you are in an accident with an uninsured motorist or are the victim of a hit-and-run, uninsured motorist (UM) coverage will reimburse you for bodily injuries sustained in the accident. Additionally, if that driver doesn't have enough coverage to pay for your total loss, underinsured motorist (UIM) insurance will compensate the difference. If these coverages are not included on your policy, check with your agent to find out what your Louisiana auto insurance rates would total up to by adding them.

The Final Ingredient
Other factors that determine your Louisiana auto insurance rates are your driving record, the type of vehicle you drive and geography. Louisiana was ranked the third most expensive state for automobile insurance paying an average of $1,096 in 2007, according to the I.I.I. Needless to say, your location is an obvious precursor of why your Louisiana auto insurance rates are on the high side. If you drive a sports car and have a curiosity for velocity your quotes could come back even higher. Check with LocalInsurance to see if you're paying too much for your auto insurance. This free service sends you multiple quotes by scouting out competing companies that want to do business with you.

To find more information on the auto insurance requirements in Louisiana, visit these useful links: