Can you explain Louisiana’s 15/30 auto insurance requirement?
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Asked May 5, 2014
Car insurance of some type is required throughout the United States, with the minimum requirements varying somewhat from one state to another. The main type of car insurance required in all states is liability insurance, and that is broken down into bodily injury and property damage classifications. The split pair of numbers is used to identify the amount of these two liability coverage's, but each coverage has its own split. In that situation, you would have a split number like 15/30 for the bodily injury portion, and another one, something like 10/20 to cover the property damage liability.
In Louisiana, 15/30 auto insurance indicates that you have $15,000 in bodily injury protection for one person in a single accident, with a maximum payout per accident of $30,000 for all injuries. In other words, your policy would pay for one person's injuries up to $15k, and all injuries you caused in the accident up to a maximum of $30k. If you exceed the $15k/$30k limits, you would have to pay for the remaining costs out of pocket.
Keep in mind, when purchasing your auto insurance, that the average cost of a hospital visit is several thousand. That means that one serious injury could exceed the limits of your policy, leaving you with large out of pocket costs. To avoid this, you can raise your limits to higher amounts.
If you have more than one type of liability insurance, such as home insurance and car insurance, you can increase your liability coverage another way. Instead of raising the limits on your policies separately, you can buy an umbrella liability policy that provides blanket protection across all of your liability coverage's. That way, if one policy exceeds the limits, your umbrella coverage will pay the rest of the costs. Umbrella policies tend to be less expensive and are available in multiples of one million dollars.
Answered May 5, 2014 by Anonymous