The average person will experience a car accident every 17.9 years, which means you’re almost guaranteed three to four car accidents in their lifetime.
God forbid this happens to you. Will your auto insurance cover all of your damages following an accident?
Here’s the truth: your full coverage car insurance may not be enough.
After an accident, many people contact their auto insurance company confident in their coverage. They soon learn that the “full coverage” they thought they had can still expose them to runaway medical bills, lost wages, or even the expenses of another party.
Don’t wait until it’s too late to find out your auto insurance doesn’t have you fully covered. You should know where you currently stand and how best to choose a policy that will protect you when it matters most.
Economic Cost of Motor Vehicle Crashes Keeps Going Up
In 2022, the total in the U.S. exceeded $470 billion a year, representing a 60% increase since 2010.
According to a new report from the Advocates of Highway and Auto Safety, car crashes cost the state of Louisiana more than $6.5 billion each year, including medical costs, property damage, and missed productivity.
Who pays for the economic cost of a car accident? Even though car insurance companies are seeing record profits, they only pay 54% of those costs, leaving the rest up to injury victims, healthcare providers, and taxpayers.
Don’t let this circumstance become your reality. It’s up to you to protect yourself and your loved ones if and when an auto accident occurs. Start by analyzing your current policy.
Tips for Analyzing Your Policy or Buying New Insurance
Do you already have auto insurance? Is what you currently have enough to protect you and your loved ones if and when an auto accident occurs? These 10 tips can help you analyze your current policy or buy a new one.
- Is your state no-fault or at-fault (tort)?
Where does Louisiana fall? Louisiana is an “at-fault” or “tort” state. This means whoever causes the car accident is liable for paying the property damages and injuries that are incurred because of the crash.
- Check your liability limits
Because Louisiana is a tort state, all drivers are required to carry liability insurance, which pays for damages and medical expenses for the other driver if you cause an accident. Experts recommend setting your liability limits to at least $100,000 per injured person, $300,000 for injuries to multiple people, and $50,000 for property damage. Minimum coverage might sound sufficient, but it can disappear quickly in a serious accident.
- Is Medical Payment Coverage necessary?
Medical payments insurance (MedPay) covers medical bills for the policyholder and their passengers after a car accident, regardless of who was responsible for the crash. Although it is something a lot of people overlook when searching for the minimal/cheapest coverage, it is good if you can afford the premium.
- Look Hard at Uninsured/Underinsured Benefits
With one in eight drivers uninsured and many others carrying only minimum coverage, you may need extra protection. Even though the law in Louisiana requires all motorists to carry liability insurance, not all will do so. If you are in an accident with an uninsured/underinsured driver, you may need much more coverage than the minimums available in your insurance policy. Ensure your policy includes enough coverage for uninsured/underinsured motorists to shield you from financial hardship after an accident.
- Review the Extras Comprehensive and Collision
Once you have solid liability and uninsured/underinsured coverage, evaluate whether comprehensive and collision insurance is worth the cost of your car’s value. Purchasing collision and comprehensive insurance can cover damage to your vehicle, regardless of who was at fault.
- Research Your Insurance Company
Not all insurers are created equal. Research their financial stability and customer service track record through resources like the Louisiana Department of Insurance, Consumer Reports, and the Better Business Bureau.
- Get It in Writing
Before finalizing your policy, thoroughly review all terms and charges. Request a detailed breakdown to ensure your coverage aligns with what you’re paying. It may also be helpful to have your agent walk you through what happens in an accident and how they determine who was at fault. Louisiana uses a comparative negligence system, meaning you can collect damages proportionate to your fault in causing the crash.
- Get Accident Forgiveness
Some insurers offer accident forgiveness plans, which prevent rate increases after a first accident. Check if this benefit is available with your provider.
- Receive All Possible Discounts
Insurance companies often offer discounts for safe driving, bundling policies, or installing safety features. Ask for a full list of potential discounts to see where you can save.
- Finally, Shop Often
Your insurance needs can change over time. Shop around every three years—or sooner after major life changes like a marriage, a move, or adding a teen driver—to ensure you get the best coverage at the best price.
Injured in an Accident? We Can Help
Have you or a loved one been injured in a car accident? It’s essential to know your rights. If you wish to discuss the specifics of your case in a free consultation with an experienced personal injury lawyer, please contact us today.