Collision and Comprehensive Insurance in Louisiana For New Car

Reader’s Question:

I’m planning to buy a new car here in Louisiana. Will my collision and comprehensive insurance rates be affected by the model of my car?

Paula Anne

New Orleans, LA

Before you buy a car or before you buy auto insurance, try to get more information because insurance rates are definitely affected by the model of the car that you’re driving. Driving a high performance car or driving a sports car means you will to pay more for auto insurance. But this fact is not the general rule in determining insurance rates for your car. As a matter of fact, most auto insurance companies calculate your collision and comprehensive premiums by studying the car’s loss history, whether the model gets stolen very often, and the costs of its repair after an incident. Nowadays, insurers charge higher premiums to sports utility vehicles or SUVs due to recent tests that show that SUVs cause more damage in accidents than other passenger vehicles.

Auto insurance companies often utilize actuarial companies that give ratings of vehicles. Certain factors are used to determine the comprehensive and collision coverage costs in order to minimize the insurance company’s risks. Then, these actuarial companies assign a risk number to a car which is then used by the auto insurance company to calculate their policy rates. However, these risk numbers are not available to the public.

But if you want to know how much it will really cost you, you can contact an auto insurance company before you purchase a vehicle. That way, you can find out first how much you should pay for an auto insurance of a BMW or a Ford pick-up truck.

Just remember, it is better to look around for more information before jumping into conclusions or making decisions about buying a car or getting auto insurance.

Auto Insurance Question – Do I Just Need Basic Liability Coverage?

Reader’s Question:

I am a flight stewardess, and I travel a lot because of the nature of my work. So, I really don’t use my car that much, and I just leave it in Naperville, Illinois, where I actually live. When I am away for long periods of time, can I suspend my auto insurance?

Gayle

Naperville, IL

The answer to your question is not really that easy. You will have to take a lot of things into consideration.

When you we say automobile insurance, it does not necessarily mean that we are having ourselves and our vehicle protected from damages only when driving. The automotive insurance coverages that we may need if we constantly use our car are collision coverage, the basic liability coverage required by most states, uninsured and underinsured (UM/UIM) motorist coverage, and the coverage for medical payments.

But what if your car just stays at home and gets damaged for numerous reasons, like vandalism or theft or fire? Comprehensive coverage is the one that is going to pay for these kind of damages which do not necessarily involve a collision. I think, what you can do is suspend just a part of your whole automobile insurance policy and not cancel it entirely.

Another matter that you need to be aware of is that all states in this country require vehicle drivers to carry a certain amount of insurance coverage. Most motorists avail of the basic liability coverage. If you are to suspend your auto insurance policy, they might also cancel your registration. If this happens, when you get back, you will be faced with all the troubles of having your car registered and reinstating your automobile insurance.

In any case, you will still have to correspond with your auto insurance carrier to be really sure about this. If you are 100% sure that your car is not in danger of getting damaged or stolen there in  Illinois, while you are away, you might want to suspend just a part of your coverage. But never just stop paying your premium without talking to your auto insurance company because this will just give you more trouble.

Comprehensive Car Insurance – Do I Need To Have It?

Reader’s Question:

Hi! My name is Jimmy, and I would like to know a couple of things about getting a car insured . I have the car financed, and I wanna know which kind of insurance would suit best for this setup. Thanks.

Jimmy

Hillsboro, OR

This should be an easy one, Jim. You’re going to need ALL of them. You have to have full coverage, Liability and Comprehensive, and Collision type. This, i think, should hold true not only there in Hillsboro, Oregon, but across all states. You see, Jimmy, finance institutions aren’t about to take the risk of not being able to retrieve the loan amount in case there is total loss. Though “full coverage” doesn’t necessarily mean your car and everything in it is covered, it still would cover “the whole car”– to include those “parts” that are permanently attached to it. Though loosely defined in this sense, it is also about the only type of vehicle insurance coverage the finance institution would want you to carry.

As with any other business, the financing firm will invariably require that you have the means to address issues involving collisions, damages to the vehicle, property, etc., etc. If you consult your finance relations officer, you’d be sure to hear the exact same thing, though maybe in a slightly more acceptable tone. But the bottom line of all this is that they want to get their money back in case you lose the car for some reason or another, and they want to make sure you can get the car fixed if it is damaged.