Types of Car Insurance Coverage in Louisiana

What Types of Auto Insurance Coverage Are Available in Louisiana?

Louisiana drivers can choose from required liability insurance (15/30/25 limits) and optional coverages like MedPay, collision, comprehensive, uninsured/underinsured motorist (UM/UIM), gap insurance, rental reimbursement, and roadside assistance. Understanding each type helps you make better choices and prevents costly surprises after an accident.

As a Louisiana car accident lawyer, I regularly hear from callers who are shocked to know they weren’t as covered as they believed.

What Auto Insurance is Required in Louisiana?

Louisiana law requires every driver to carry liability insurance. The minimum limits are:

• Bodily Injury Liability: $15,000 per person and $30,000 per accident for injuries you cause to others.
• Property Damage Liability: $25,000 per accident for property damage you cause.

These limits are often called “15/30/25.” Liability coverage pays for the other person’s injuries or property damage if you are at fault. It does not pay for your own medical bills or vehicle repairs.

Many people confuse these types of coverage, but there is an important difference between property damage and bodily injury. Property damage pays for repairs or replacement of vehicles and other property, while bodily injury pays for medical costs, lost wages, and other harms suffered by people.

What Optional Auto Insurance Coverages Can You Add

Adding optional coverage can protect you from out-of-pocket costs and help you recover faster after an accident. Here are the most common types available in Louisiana:

• Medical Payments (MedPay): MedPay pays for medical treatment for you and your passengers regardless of fault.
• Comprehensive Coverage: Covers your own vehicle if it’s damaged by theft, vandalism, fire, flooding, or hitting an animal.
• Collision Coverage: Pays for your car’s repair or replacement after a crash, even if you caused it.
• Uninsured/Underinsured Motorist (UM/UIM): Covers injuries caused by a driver with little or no insurance.
• Economic-Only UM: A lower-cost version that pays only for economic losses like medical bills and lost wages.
• Gap Insurance: Helps pay the difference between your vehicle’s actual cash value and what you still owe on your loan or lease if your car is totaled.
• Rental Reimbursement: Covers the cost of a rental car while your vehicle is being repaired after a covered accident.
• Roadside Assistance: Provides help for common issues such as flat tires, dead batteries, or towing if your vehicle breaks down.

How Much Liability Should I Carry?

Recently, we reviewed a client’s personal auto policy, and two things jumped out right away. Things we want you to consider, too. The client had uninsured/underinsured motorist (UM) coverage, which protects you if the other driver has no insurance or not enough to pay for your damages. That was good news. The problem? The client only had the minimum limits, and that meant both their liability and UM coverage were tied to that low amount.

Minimum coverage is cheaper, and it’s all the State of Louisiana requires, but that doesn’t mean it’s enough. Even a minor crash can lead to thousands of dollars in medical bills, lost wages, and pain and suffering. If you have a home, savings, or other assets, a judgment that exceeds your policy can come out of your pocket. Everything you’ve worked for could be at risk because of one accident.

The more liability coverage you carry, the more UM coverage you can carry. That matters because most Louisiana drivers only have the minimum. A single surgery or night in the hospital can easily exceed $15,000, even with good health insurance. And if a crash takes away your ability to work or costs your family a loved one’s income, those losses add up quickly.

I can’t tell you an exact number to buy, but here’s my general rule: carry as much liability and UM coverage as you can reasonably afford. One serious crash can make your policy pay for itself many times over. On the other hand, one bad wreck with too little coverage can cost you everything.

How Do I Choose the Right Coverage?

Each policy can be customized based on your needs, budget, and vehicle. If your car is financed, your lender will likely require both comprehensive and collision coverage. Even if you own your car outright, adding optional coverage like MedPay or UM/UIM can save you from major financial hardship later.

Drivers who commute long distances or travel often may benefit from adding roadside assistance and rental reimbursement. Those with newer or financed vehicles should strongly consider gap insurance to avoid being stuck paying off a totaled car they can no longer drive.

What Does “Full Coverage” Really Mean?

Many drivers say they have “full coverage,” but the phrase can be misleading. In practice, “full coverage” often means a policy that includes only the legally required minimum liability limits plus collision and comprehensive.

Do not rely on the label “full coverage.” Review your declarations page, confirm the exact coverages and limits you carry, and consider increasing your limits and adding UM/UIM, MedPay, and other options that fit your budget and risk.

Why Does Knowing Your Coverage Matter?

Misunderstanding your policy can lead to serious financial stress after an accident. Reviewing your coverage regularly ensures you have the protection you think you’re paying for. A quick conversation with your insurance agent can help you identify gaps before they become costly mistakes.

If you’ve been involved in a wreck and aren’t sure what your insurance covers, talk with a New Orleans car accident lawyer who understands how to handle complex insurance issues. Call LJBLegal at (985) 240-9773 for a free consultation and guidance from a Louisiana injury law firm that helps drivers understand their rights and recover what they’re owed.