The New Orleans city has water in almost all sides of the city, and since the city lies lower than the sea level, it is flooded quite regularly. The floods lead to huge losses, including property loss like homes and vehicles. The roads of New Orleans are quite narrow, and most of the streets are one-way roads. It is difficult to drive your car in some of the roads as they are very narrow. There are designated parking lots to park your vehicles as there are limited parking spaces in some of the neighborhoods in New Orleans. Some of the streets are curvy, and hence driving in New Orleans can be risky. Therefore, it is crucial for a motorist to buy car insurance New Orleans.
Car insurance in New Orleans is higher than the rest of the state. However, it has low minimum insurance requirement. The limits required in New Orleans are:
- Liability insurance for bodily injury – $15,000 per person
- Liability insurance for bodily injury – $30,000 per accident
- Minimum liability limit for property damage – $25,000
We can help you to choose the best car insurance in New Orleans Louisiana. Check our list of the best car insurance companies to identify the perfect one for you.
Types of Coverage for Car Insurance in New Orleans
Liability coverage for bodily injury and property damage is a mandate for all drivers in New Orleans. By law, they should at least carry a minimum required insurance coverage. However, it is not advisable to only go with the minimum liability limit imposed by the state. A driver should opt for the insurance coverages as much as they can afford.
Flood, hurricane, tornadoes, and tropical storm are some of the natural disasters that can cause huge losses. Comprehensive coverage is recommended in New Orleans to cover damages from natural disasters. Collision coverage will cover repair expenses or any damages to the car if you have been in an accident. It is highly recommended to buy collision coverage if your car is new or less than a decade old.
Medical coverage is another recommended coverage as it will take care of medical expenses and also funeral expenses if you have been in a serious accident. It covers medical expenses of the driver as well as co-passengers in the car in the event of an accident.
If you bought a car on loan or lease agreement, and you had an accident, gap insurance will pay the difference amount of your car value and the remaining loan amount. You should opt for gap insurance if your car is new and has not completed even a year, and you have made a down payment of 20 percent and less.
Uninsured motorist coverage will take care of your expenses if you’re in an accident with an uninsured motorist. The same goes for underinsured motorist insurance coverage as well. If the driver is underinsured, you can still cover your expenses with this coverage. Both these coverages are optional in New Orleans. So, do check with your insurance provider and have an in-depth discussion if you would require uninsured or underinsured motorist insurance coverage.
Factors that Determine the Best Car Insurance in New Orleans Louisiana
In Orleans, gender plays a role in insurance premium rates. A male driver pays cheaper premium amount than a female driver. A married driver pays almost $150 lesser premium amount than a single status driver. A widowed driver pays a tad cheaper insurance premium than a divorced or single status driver. In Orleans, a driver in the age group of 70 pays a cheaper premium as compared to any other age group. Teenagers pay almost double the premium amount than a motorist in his 20s. Once you cross the teenage years and turn 20, your premium amount drastically drops down. From the age group of 20 and onward, the premium amount starts to decrease.
The credit score is considered in New Orleans to determine your insurance cost. A good credit score will help you in getting a reasonable insurance premium as compared to a poor credit score. Auto insurance is quite on the pricier side in New Orleans. Therefore, it is highly recommended that you maintain things that are in your hand, like your driving history. If you have a driving history with reckless driving, violations of laws, or at-fault accidents, then your insurance cost will be very expensive. A location with crime and auto theft is another factor that adds to your insurance cost. Controlling the crime rate in your location may not be in your hands; however, the insurance companies will look into it as a risk and cost. It will be beneficial if you happen to live in a good locality with less crime.
It is always recommended to check NAIC ratings of insurance companies. Insurance should be bought from reputed companies that can be trusted. Compare and check the rates of various insurance companies before you decide to buy insurance.