In Louisiana, drivers are required to have liability insurance in place. This coverage protects the occupants of the other vehicle when an accident occurs. It pays for medical bills, rehabilitation costs and other expenses incurred by the victims from the accident.
Under state law, a minimum of $10,000 in coverage must be bought to pay for the injuries sustained by a single person in an accident. At least $20,000 must be purchased to pay for damages incurred by all people injured in the same accident, no matter how many people were hurt.
Along with the bodily injury liability coverage, drivers in Louisiana are also required to have at least $10,000 in property damage insurance in place. This coverage pays for the cost of repairing the other driver’s vehicle, as well as other property damaged or destroyed in the accident, such as sign posts, light stands, fences and sheds.
The policy issued by a Louisiana car insurance company for liability purposes covers you and members of your family who are driving your vehicle. It also covers others who are driving your car with your permission.
Before you choose to lend your car to someone, keep in mind that you are also lending that person your insurance coverage as well. If they are involved in an accident while operating your vehicle, your insurance rates will be affected.