What is Required for New Orleans Drivers?
In the state of Louisiana, as in all other states, vehicle owners are required to have liability insurance according to state laws. Louisiana is also a “Fault Auto Accident State” meaning someone has to be named as the person who caused the accident and responsible for financial losses. A person In Louisiana, who suffers an injury or damage to their vehicle due to an auto accident, has three options to proceed, they can:
The required minimum liability amounts drivers need to have are:
Cheap Auto Insurance in New Orleans
Single Male, 18, 1 At-fault Accident – Liability/Full Coverage
We checked rates and coverage plans for numerous insurance companies operating throughout the state of Louisiana. Out of the many insurance companies that were checked we reduced our list to the 8 well-known companies seen in the chart below, with the best coverage rates.
The Louisiana driver profiled in this scenario is an 18-year-old single male who has had 1 accident where he was at fault and is looking for auto insurance coverage. Using the chart, we can determine how much it would cost him for both a liability-only and a full-coverage plan depending on 5 different cities he resides in. As you can see in the chart that Allstate located in New Orleans, has the best rate at $1,700 for liability and for full coverage Safe Auto has the best rate of $3,656. This may seem like a significant increase, but it’s not that surprising. See below for the differences between liability-only and full coverage insurance.
|Single Male||Liability Coverage|
|Single Male||Full Coverage|
Single Female, 18, 1 At-fault Accident – Liability/Full Coverage
Now let’s take a look at a female driver who fits the same demographics; she is also an 18-year-old driver not married who was the cause of 1 accident and is seeking auto insurance. The best rate for liability is from Allstate again, at $1,382 and for full coverage, Allstate still has the best rate, at $2,623.
You may have noticed that insurance plans, whether it’s just liability or full coverage, are slightly higher for a male, even though he has the same demographics as a female. This is due to males being considered somewhat more reckless drivers than females who are more cautious drivers at a young age. This increases the risk for an insurance company, and therefore also increases their rates. However, this can change with age.
|Single Female||Liability Coverage|
|Single Female||Full Coverage|
Married Male, 30, No Violations, 15,000 miles driven annually – Liability/Full Coverage
Our next profile is a 30-year-old married male who drives approximately 15,000 miles per year and doesn’t have any violations. Again, Allstate proves to have the lowest rate for liability insurance at only $317. The next closest is Geico at $425. Moreover, it looks like Esurance in New Orleans has the highest rate for liability at $909. For full coverage, this driver can get the best rate from Safe Auto for $853 and the highest rate is $1,493 from Esurance.
|Married Male||Liability Coverage|
|Married Male||Full Coverage|
Married Female, 60, No Accidents or Violations, 5,000 miles driven annually – Liability/Full Coverage
A 60-year-old married female without any violations or accidents who drives 5,000 miles per year can also get a liability insurance coverage plan for $317 from Allstate. Esurance has the highest rate at $790 for liability-only insurance in New Orleans. If the same female was looking to get a full coverage insurance plan in New Orleans, she would need to pay $709 at Liberty Insurance and again Esurance in New Orleans has the highest rate for full coverage at $1,185.
|Married Female||Liability Coverage|
|Married Female||Full Coverage|
The Difference Between Liability and Full Coverage in New Orleans
What is Liability-Only
Liability insurance covers the possible cost of damage you cause to others while driving. This could mean the cost of medical care for those injured in an accident or repair costs of the damage you have caused to other vehicles.
With liability insurance, there are 3 key numbers: injury coverage per person, coverage for total injury per accident, and property damage coverage per accident. The state of Louisiana liability coverage requirements looks like this 15/30/25. $15,000 per injured person, with a maximum of $30,000 for all the people who are injured in an accident, and $25,000 in coverage for property damage.
What is Full Coverage
While liability insurance covers other people and vehicles in an accident where you were the one considered at fault, full coverage insurance can also cover you and your vehicle as well. Full coverage includes two different types of coverage combined into one insurance plan; comprehensive insurance and collision.
Comprehensive coverage is for the damage of other vehicles that are outside of driving situations such as weather damage, fire, or theft.
Collision coverage is basically to pay for damage that you caused while driving such as an accident with another vehicle, hitting an object, or driving off the road.
The difference between collision and comprehensive is, if a tree were to fall on your car and damage it, comprehensive insurance would cover it, however, if you were driving and hit a tree causing damage to your car, then it would be covered by collision.
Difference Between the two and cost examples
The main difference between liability and full coverage insurance is that full coverage will cost more than liability insurance and this is because it protects you against many more possible risks that liability doesn’t cover.
In addition, liability insurance only covers other people’s injury claims and damages to other vehicles where full coverage will cover other’s injuries and vehicle damages as well as your injuries and damage to your own vehicle.
According to the National Association of Insurance Commissioners, who compiled statistics in 2014, Louisiana is third in states that have the highest insurance rates, with an average rate of $1,275. Washington, DC is the second with an average rate of $1,289, and New Jersey holds the first place at $1,334.