New Orleans Auto Insurance
What is auto insurance?
Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.
Auto insurance provides property, liability and medical coverage:
- Property coverage pays for damage or theft of your car.
- Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
- Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
A New Orleans auto insurance policy is comprised of six different kinds of coverages. If you’re financing a car, your lender may also have requirements.
Most auto policies are for six months or a year. Your company should notify you by mail when it’s time to renew your policy and to pay the premium.
Why do I need auto insurance?
It’s really about protecting yourself financially.
- If you’re in an accident or your car is stolen, it costs money, often a lot of money, to fix or replace it.
- If you or any passengers are injured in an accident, medical costs can be extremely expensive.
- If you or your car is responsible for damage or injury to others, you may be sued for much more than you’re worth.
- Not only is having insurance a prudent financial decision, many states require you to have at least some coverage.
Questions to ask your agent:
- Your independent agent is an advocate for finding auto insurance that meets your specific needs. Here are a few things to consider as you prepare for the discussion. How much can you afford to pay if you get into an accident? To keep premiums low, you may want to have a higher deductible and be willing to pay more for repairs.
- What is the insurance company’s level of service and ability to pay claims?
- What discounts are available? Ask about good driver, multi-policy and student discounts.
- What’s the procedure for filing and settling a claim? Ask who to call and what happens after you file a claim?
|Type of Coverage||Pays For||Covers||Required?|
(Bodily Injury & Property Damage)
|Other people’s medical expenses and auto repairs, attorney fees, and $250 bail in an accident you are charged with||You, your family, and others driving with your permission||By state Law|
|Uninsured/ Under-insured Motorist||Medical and funeral expenses, car repairs, car rental and replacement of damaged contents if you are in an accident and the other party doesn’t have insurance. Up to 25% of the drivers in Texas don’t have insurance||You, your family, and your passengers||No, but must be offered|
|Medical Payments||Medical and funeral expenses (co-pays, deductibles, etc.)||You, your family, and your passengers||No|
|Personal Injury Protection (PIP)||Medical and funeral expenses, lost wages, homemaker/ caregiver services||You, your family, and your passengers||No, but must be offered|
|Collision||Car repair or replacement after an accident||Your car, regardless of driver||By lenders|
(Physical Damage other than Collision)
|Car repair or replacement after fire, hailstorm, theft, or other non-collision event; rental car after theft||Your car||By lenders|
|Towing and labor||Towing and labor charges when your car is disabled||Your car||No|
|Rental Reimbursement||A rental car if yours is undergoing repair for covered damage||You and your family members||No|