Auto insurance set to go up January 1st

By Crystal Price - bio | email

LAKE CHARLES, LA (KPLC) - The cost of minimum liability insurance for automobiles in the state of Louisiana is expected to go up beginning January 1, 2010.

The increase is all part of House Bill 1312 to increase the premiums for drivers in the state of Louisiana.

"Ten-thousand dollars isn't what it used to be," says Tommy Curtis, an agent with Curtis Insurance. "I think people have been under-insured at the minimum level for a long time."

Thanks to the new bill, the minimum cost of bodily injury will increase from $10,000 per person to $15,000.

The amount for bodily injury per accident will increase from $20,000 to $30,000.

The amount for property damage will see the highest increase that will go from $10,000 to $25,000.

"People need to understand that this is for the betterment and for the protection of the driving public," says Curtis.

Curtis also says this is the first time in 20 years the state has seen an increase in coverage.

But just because the coverage increases, that doesn't necessarily mean your insurance bill will see the same hike.

"Although it is a 50% on coverage, that doesn't mean it will be a 50% on insurance," says Curtis. "That will not be the case. I think the premium will be acceptably low enough for everyone."

While you might think drivers would risk going without car insurance to avoid the increase next year, folks we talked to say that's not going to happen.

"I'd rather not pay it but it's the law," says Jerome Minsay, an insurance customer of Curtis Insurance. "You're going to wind up paying five times as much in the long run with penalties and other fees."

Which is why a slight increase on your next insurance payment might just be your lifesaver the next time you hit the road.

If you would like more information on how you can negotiate a better deal as the insurance premiums go up, be sure to contact your car insurance agent.

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