What Does Your State Minimum Coverage Really Cover?

Louisiana’s minimum required auto insurance liability limits are 15/30/25.  Liability coverage is paid to someone else for damages caused by you.  In auto insurance, that would typically be an accident that’s your fault.  So if you carry 15/30/25 limits, you have $15,000 coverage for BODILY INJURY (BI) liability per person, subject to a maximum of $30,000 per accident and $25,000 for PROPERTY DAMAGE (PD) liability.  In other words, your policy would pay $15,000 to any one person injured in an accident you cause and a total of $30,000 for bodily injury for any one accident.  Also, it would pay $25,000 for damage to property you have caused – normally, the other person’s car, but it can be any other real property.

You can be held responsible for the damage you cause above the amount paid your insurance policy.  With state minimum limits, you only have $25,000 Property Damage liability coverage.  How many cars on the road are worth more than $25,000?  What if you damage two vehicles and total them?   You could potentially have to pay out of pocket for the damage.   Wouldn’t you prefer to pay a few dollars more each month and carry higher liability limits to avoid this scenario?  Check your policy to see what limits you carry and consider increasing them if needed.

Visit us at www.lainsurance.net to request a quote or contact one of our agents to discuss your auto liability coverage.