Auto Insurance
As an independent insurance agency, Alliance Insurance Agency can match your coverage needs with policies from the best insurance companies in the country.
We have coverage for every type of vehicle from cars and motorcycles to RVs and ATVs. We even insure commercial vehicles.
Below are answers to some common questions about Auto Insurance.
Is cheaper better when it comes to auto insurance?
No matter how low the premium might be, an inexpensive policy does you absolutely no good if the insurance company cannot cover your claim when your car has been involved in an accident.
Whatever your insurance needs, you should choose a company that is financially sound, has a history of providing good service, and charges a fair rate.
As an independent insurance agency, Alliance Insurance Agency reviews each auto insurance company we represent for its quality of service and financial strength, not just its cost of coverage.
What auto insurance coverage is required in Louisiana?
Louisiana law only requires drivers to carry minimum liability coverage on any automobile they own or risk facing costly penalties such as fines and car impoundment. This coverage pays for property damages or personal injury for which you may be legally responsible, up to the limit of your policy.
In Louisiana, each vehicle is required to have 15/30/25 liability limits. Those limits provide payments of $15,000 for bodily injury to one person, $30,000 for bodily injury to more than one person in a single accident, and $25,000 coverage for damage to someone else’s vehicle or other property.
What is auto liability insurance?
Auto liability insurance covers bodily injury or property damage caused by you, your family members, and others driving your vehicle with your permission. You and your family members are also covered when driving another person’s automobile including rental private passenger vehicles. Company cars and other non-owned cars regularly available to you are not covered by your auto liability insurance policy.
What are the penalties if I don’t have proper coverage in Louisiana?
Louisiana law requires that all registered owners of an automobile carry liability insurance. You may be subject to fines of $500 to $1,000 for knowingly operating a vehicle without insurance, being involved in an accident without insurance coverage and committing fraud by falsely claiming to have auto insurance coverage. There are also penalties for lack of proof of insurance or for letting your insurance lapse.
Drivers without liability insurance may also have their driving privileges suspended by having their vehicle impounded, their registrations revoked or their license plates cancelled. If you are involved in an accident without liability insurance you may have your driver’s license suspended and registrations revoked for 180 days. Also, if you are caught falsely claiming to have insurance you may have your license revoked for 12 to 18 months.
What other auto insurance coverages are available?
Medical payments coverage
Medical payments coverage pays for medical expenses for a designated period of time following the accident, including funeral expenses, up to the limits of your policy. Payments are made regardless of who is to blame for the accident. Medical payments covers you, your family members and other passengers in your car.
Uninsured/Underinsured motorist coverage
Uninsured/Underinsured motorist coverage pays benefits to you if your car is hit by a driver who has no insurance or too little insurance to pay for the full amount of your injuries or property damage. Any bodily injury you or an occupant of your vehicle suffers due to an accident caused by another driver is covered under this policy. Hit-and-run drivers may be classified as uninsured motorists, but it helps if there is a disinterested witness to the accident.
Uninsured/Underinsured Motorist economic-only coverage
This is the same as uninsured motorist coverage except that it covers only the actual costs of injuries to you and the occupants of your vehicle. Pain and suffering are not included under this coverage.
Uninsured/Underinsured motorist property damage coverage
This coverage provides for repairs to your vehicle if you are in an accident with an uninsured driver. A $250 deductible applies under this coverage, and with liability coverage, your recovery is limited to $25,000 or the actual cash value of the vehicle, whichever is less. You can purchase a higher recovery limit if you choose. If your policy includes collision insurance, this coverage is not available.
Towing and labor coverage
Towing and labor coverage pays for towing costs and labor costs when your car is disabled. Most automobile policies limit this coverage to $25 per tow, and some companies will not write towing and labor coverage for older cars.
Comprehensive coverage
Comprehensive auto insurance coverage pays for specified damages to your automobile, such as those resulting from falling objects, flood, fire, explosion, vandalism, theft or additional named causes other than collision, subject to any exclusions or limitations specified by your policy.
NOTE: Street flooding from heavy rainfall has been a major cause of damage to vehicles in the New Orleans area in the past including the low lying areas of Jefferson Parish such as Metairie and Kenner.
Collision coverage
Collision coverage pays for damage to your car that results from an accident. You can collect under your own collision coverage, whether or not you were at fault. Collision coverage is always sold with a deductible.
NOTE: Although many people tend to drop collision and comprehensive coverage on older cars, lenders usually require you to carry comprehensive and collision insurance until the vehicle is paid for no matter the vehicle’s age or value.
Transportation Network Company coverage
If you drive for a Transportation Network Company (TNC) like Uber, you may want your own insurance coverage on top of what the TNC may offer. Driving for hire for a transportation network company such as Uber can be a great way to make extra money, especially in densely populated area such as New Orleans and Metairie. However, be sure to talk to an Alliance Insurance agent before you sign on as a TNC driver!
NOTE: Most personal auto policies exclude coverage while you are carrying a passenger for hire.
What factors affect my premium cost?
There are many factors that can raise or lower the cost of your auto insurance premium. These factors include:
Your age
Generally, single male drivers under the age of 25 and female drivers under the age of 21 have higher insurance premium costs than other drivers.
Where you live
Generally, urban areas have a higher incidence of accidents and auto thefts than rural areas, so urban area insurance premium rates tend to be higher than in rural areas.
Type of car
Luxury, sports and high-performance cars tend to be involved in more accidents and thefts than economy cars and so they usually have the highest comprehensive and collision rates.
Your deductibles
A deductible is your share of the cost of comprehensive or collision coverage in the event of an accident or theft. If you choose a high deductible, your premiums will be lower than if you choose a low deductible with the same coverage.
Your driving record
If you have a good driving record, some auto insurance companies offer a discount. Driving tickets and at-fault accidents can mean higher auto insurance premiums.
Your credit score
Credit scoring is a numerical value which assesses an individual’s credit worthiness (i.e. reliability for paying bills). Credit scoring is used by many insurance companies as a rating factor for auto insurance.
What kinds of discounts can I get on my auto insurance premium?
Good driving record discount
The most common discount is for a good driving record. However, this is usually the case when you have no added premium costs for tickets and at-fault accidents.
Multi-Car Discount
You are often eligible for a discount under a “multi-car” plan if you insure two or more cars with the same insurance company.
Multi-Insurance Plan Discount
Some companies offer an auto insurance discount if you have a life or homeowners insurance policy with the same company.
Higher deductible discount
A deductible is your share of the cost of comprehensive or collision coverage. If you choose a high deductible, your premiums will be lower. For example, buying collision coverage with a $500 deductible will cost less than the same coverage with a $250 deductible.
Good grades discount
Most Louisiana insurance companies will give discounts to full-time students with a B average or higher.
Driver education discount
Some companies may reduce your liability and collision premiums if you take a defensive driving course. Teenagers who have taken driver education may also get a discount.
Senior citizen discount
Some companies may offer a senior citizen discount.
Safety features discount
You may be entitled to a discount if you have extra safety features on your vehicle such as anti-lock brakes, anti-theft devices and air bags.
What if I am involved in an auto accident?
1) Call the police immediately.
2) Exchange information with the other driver. Make sure you get the other driver’s name, address, telephone number, license plate number, driver’s license number and insurance information. Give the other driver the same information about you.
3) Notify your insurance agent or company.
4) Get a copy of the police report. Be sure to obtain a copy of the police report for your records, whether or not you are at fault.
The information presented on this website is for general reference purposes only and does not override or serve as an addendum to any insurance policy or contract. Always consult your insurance policy or your Alliance Insurance Agency Services, Inc representative for accurate information regarding your policy and coverage.
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