Auto

The Center is pleased to provide you with a variety of educational resources to help you become a more informed insurance consumer.

New study highlights the huge cost of mismatched bumpers:
Bumpers are the first line of defense against costly damage in everyday low-speed crashes. But new Insurance Institute for Highway Safety crash tests demonstrate that when SUV bumpers don’t line up with those on cars, they can lead to huge repair bills in what should be minor collisions.

The Institute conducted 10 mph front-into-rear crash tests involving 7 pairs of 2010-11 models, each composed of a small car and small SUV from the same automaker. The results of these low-speed impacts varied widely, from a total of $850 damage to one vehicle to $6,015 damage to another. Read More>>

Tips for saving on your auto insurance

  1. Shop around…
    Make a few phone calls, check online, ask a few friends, contact your state insurance department – take a few minutes to compare price, service and financial ratings of the companies
  2. Increase your deductible…
    By increasing your deductible from $250 to $500 you can reduce your premium.  The amount of the reduction will vary based on your insurance company
  3. Seek out discounts…
    Insurance companies offer a variety of discounts.  You should ask the agent or company representative about the discounts that are available to you
  4. Maintain a good driving record…
    An accident-free track record along with avoiding moving traffic violations will help you save money on insurance
  5. Consider dropping collision or comprehensive coverages on older cars…
    The more coverages you purchase, the higher the premium.  The value of some older cars may be low compared to the cost of collision coverage and may not need the extra coverage
  6. Drive a vehicle that is less likely to be stolen…
    Some vehicles are more likely to be stolen than other vehicles.  Rates will be higher for vehicles more vulnerable to theft
  7. Drive a vehicle that performs well in crash tests…
    Vehicles that are more costly to repair or replace will increase insurance costs
  8. Encourage your student driver to maintain good grades…
    Many insurance companies reward students with good grades with lower insurance rates because they tend to have fewer accidents
  9. Consider purchasing your auto and homeowners insurance from the same company…
    Some companies offer discounts if a consumer purchases multiple policies
  10. Talk with your agent about your driving habits…
    Rates may be higher for people who drive their vehicles for business rather than pleasure.  Rates may also be higher for people who drive many miles, for instance more than 12,000 miles per year.

Minimum Liability Insurance Requirements
Motorists in Louisiana are required to carry liability coverage on their automobiles.  Based on legislation passed in 2009 and became effective January 2010, the state now requires minimum limits of $15,000 for bodily injury liability to one person, $30,000 for bodily injury liability for two or more persons injured in any one accident, and $25,000 for property damage liability (commonly stated as 15/30/25 limits)

Insurers Strive to Control Costs to Consumers
There are a number of factors that could influence the cost of insurance. In addition to your driving record and other personal factors, the price you pay for insurance could be affected by the following:

  • Potential repair costs
  • Claims adjusting costs
  • Fraud costs
  • Inflation costs
  • Medical treatment costs
  • Uninsured drivers

As these costs increase so may the cost of insurance for consumers. While these costs cannot be directly controlled by insurance companies, some take steps to ensure that consumers pay a fair price for insurance. Insurance companies can manage costs by:

  • Developing direct repair programs that use a network of reliable auto body repair facilities that provide high quality repairs at competitive prices
  • Using the latest technology to streamline the claims adjustment process and achieve greater efficiency
  • Fighting fraud and investigating suspect claims
  • Opposing frivolous lawsuits and runaway medical bill inflation
  • Supporting driving safety education programs, auto safety, and anti-drunk driving efforts

Educational Resources on Automobile Insurance
For more information about automobile insurance visit:
The Insurance Information Institute whose mission is to improve public understanding of insurance—what it does and how it works.

The Insurance Institute for Highway Safety is an independent, nonprofit, scientific, and educational organization dedicated to reducing the losses - deaths, injuries, and property damage - from crashes on the nation’s highways.