Car Insurance Regulations and Required Coverage in Lake Charles

An accident happens while driving an auto. It is surprising, in some areas of the USA, for example, Alabama, Mississippi, Iowa, Pennsylvania, and New Hampshire, it isn’t mandatory to have car insurance. These states have their own ‘financial responsibility’ laws which need to have cash deposit, bond, or approved self-insurance with the state covering damages if you’re involved in an accident. Before going into auto insurance Lake Charles, take a quick look at what happens in other states. In other states, car insurance is mandatory. Lake Charles is a city of the state of Louisiana. The state has a mandatory requirement regarding car insurance. Any of its drivers compulsorily need to have a car insurance policy to meet financial responsibility while driving a vehicle. Louisiana follows strict adherence to car insurance law in a tort manner. It means, it always places the driver under the scanner to find fault when an accident happens and he has to pay for the damage incurred.

Required Coverage

Auto insurance Lake Charles needs the following liability coverage requirements:

Bodily Injury Liability

According to the statute, Louisiana residents having a car need to cover a minimum limit of $15,000 / $30,000 for bodily injury liability. It means, if it is seen in an accident you are at fault, this policy will pay a compensation up to $15,000 per person for their injury and $30,000 in total per accident. It means if two or more persons cause injury in an accident, the policy will pay up to and not more than $30,000 in total. Your bodily injury isn’t covered under this policy. This liability coverage is for others to whom the physical injuries are caused due to an accident within the terms and meaning of the plan.

Property Damage Liability

Property damage liability refers to damage caused to another automobile or any other property such as a fence, a home, etc. The law demands you need to cover a minimum limit of $25,000. It states that in case of an accident, this policy will pay a maximum up to $25,000 towards compensation of other property damage.

However, $15,000, $30,000, and $25,000 are the minimum requirements that your car insurance policy should have. While purchasing auto insurance Lake Charles, it advisable to consider the present price of the luxury cars or trucks which are well above $50,000. You can increase your coverage, adding an affordable increase in premium.

Medical Payments or Personal Injury Protection (PIP)

You can purchase personal injury protection (PIP) to cover for medical expenses, which may be necessary after an accident. Unlike other health policy, the personal injury protection part of auto insurance Lake Charles pays for medical costs incurred. You will get these benefits even when you and your family members travel in someone else’s car and have fallen in an accident. The policy also covers an accident when you’re hit by a vehicle while walking.

Comprehensive Insurance

Comprehensive policy covers for loss of car resulting from theft, vandalism, fire, riots, explosions, storms, floods, falling objects, collision with animals, etc. The comprehensive policy does not cover collision with other vehicles or purposes for which you need additional collision insurance coverage. This policy has a lower excess than a collision cover.

Collision Insurance

Collision insurance covers only damage caused due to the collision to your vehicle irrespective of the person who was responsible for the loss. Auto insurance Lake Charles reimburse you the cost repair less the deductible. The higher the deductible, the lower is the premium. However, the collision coverage premium depends on the value of your car.

Failure to Maintain Insurance — Penalties

If you are not able to show proof of insurance, you have to face the following penalties:

Immediate loss of registration, license plates, and impoundment of the vehicle

Motor vehicle office can suspend your license and registration if you can’t show any proof of insurance and impose penalties at the rates as applicable according to the law.