Car insurance rates rise today for Louisiana drivers - KPLC 7 News, Lake Charles, Louisiana

Car insurance rates rise today for Louisiana drivers

by Brandon Richards bio | email

LAKE CHARLES, LA (KPLC) - If you carry only the minimum amount of liability coverage on your vehicle, your insurance rates are about to go up.

Thanks to a new Louisiana law, which went into effect New Year's Day, forty percent of Louisiana drivers, or one million, can expect to pay on average six more dollars each month for their insurance. The increase is a direct result of the new law, which raises the minimum amount of liability coverage on vehicles.

Under the old law, vehicle owners were only required to carry 10-20-10 liability coverage. Under the new law, it's 15-30-25, which means motorists are now required to carry $15,000 coverage for injury or death to one person, $30,000 for injury or death to two or more and $25,000 coverage for property damage.

Officials say the increase is needed to help pay for higher costs of accidents and repairs. Critics of the new law say it's likely to lead to more uninsured drivers on the road. Supporters doubt drivers will even notice the increase in their monthly statements.

Most Louisiana motorists are unaware of the changes because insurance companies were not required to notify their clients. The bill was passed by the Louisiana legislature in 2008.

Louisiana Governor Bobby Jindal did not sign the measure into law. Instead the governor allowed the bill to become law without his signature.

Copyright 2009 KPLC-TV. All Rights Reserved.

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