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On Friday, Louisiana motorists will be paying more for auto insurance due to a law that increases requirements for minimum liability coverage. Louisiana law currently requires car and truck owners to have at least “10-20-10” liability coverage. The new law changes the levels to “15-30-25.”
The average increase will be about 71 bucks a year, and many drivers are expected to be caught off-guard because insurance companies weren’t required to notify policy holders.
News Channel 5’s Joel Massey went to state farm today to find out why lawmakers wanted an increase.
If you’ve got minimum insurance coverage on your car or truck you’ll be paying a bit more in the new year. The state legislature voted on the increase two years ago. Brent Bradley with State Farm explains why.
“Our existing limits are low compared with Texas, Arkansas and Mississippi the 10 thousand dollar coverage doesn’t go that far in satisfying the potential claims that somebody might experience as the result of an auto accident.”
Bradley says that the increase will mostly affect drivers with the least amount of income.
“Folks have limited liability because that’s all they can afford,” he said. “There is the potential to see a rise in the number of uninsured motorists.”
Even though the surrounding states have a higher minimum coverage Louisiana drivers still pay more due to factors like more uninsured motorists, more folks suing each other, and the likelihood of getting hit by a hurricane or tornado.
The increased rates will rise for more than a million drivers in Louisiana who have minimum coverage. The new law will not affect motorists with more coverage.
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