Louisiana Insurance Questions Answered

Popular Questions about Louisiana Car Insurance

Louisiana car insurance rates are among the highest in the nation, but independent insurance agents can help you find the best rates on the coverage you need. 

The average cost for car insurance nationwide is $1,311. In Louisiana, residents pay an average of $1,774 per year. You'll get the best rates if you compare quotes from multiple companies before you choose a policy.

Even the best Louisiana drivers sometimes find themselves involved in an accident. If you are involved in a collision, here are some ways that your car insurance will help:

  • Fix your car: Not required. We call this "comprehensive and collision coverage," and though it is not required by the state, it may be required by your lender. 
  • Fix someone else's car: Required/Min. $25,000. We call this "property damage liability." 
  • Pay your medical bills: Not Required. We call this "personal injury protection" or "PIP." 
  • Pay someone else's medical bills: Required/Min. $30,000. We call this "bodily injury liability."

Louisiana drivers are required to have car insurance, and it's a smart investment. If you cause an accident, your insurance will cover the cost of the other driver's car repairs and medical expenses.

The driver who caused the accident is responsible for covering the cost of damage.

Car insurance works only if you have the right coverage. But far too often, people drive without any insurance. This can lead to financial disaster if they cause an accident. 

Adding uninsured motorist coverage to your insurance policy is a smart way to protect yourself in case you are hit by an uninsured driver. This policy will pay to fix your car, and it even covers medical bills if you are hurt in an accident in which an uninsured driver is at fault.



Popular Questions about Louisiana Home Insurance

The average American homeowner pays $1,173 per year for home insurance, but in Louisiana, the average annual premium is $1,945, making it one of the most expensive states in the nation. Even though insurance is more expensive for homes in Louisiana, having insurance is vitally important because hurricanes, tropical storms, tornadoes, and other hazards cause serious damage to homes each year.

Your home insurance gives you a backup plan in case a catastrophe strikes in your neighborhood. Whether it's a fire, heavy winds or a burglary, you're covered if you have a suitable Louisiana homeowners insurance policy.

Pays for repairs to your home and your belongings

  • Example: A tree falls on your house, and rain ruins your 60" Samsung TV.

Pays for someone else's injuries or property damage when it's your fault

  • Example: Your kid is playing baseball and accidentally smacks the ball through your neighbor's window.

Pays for temporary living expenses when your home is damaged

  • Example: You need a hotel while your house's roof is being repaired due to a fallen tree.

We can’t be 100% certain, but in 2017, insurance companies spent more than $711 million on home insurance claims in Louisiana. That's a lot of unfortunate events happening to Louisiana homeowners.

Insurance carriers calculate the cost of a home insurance policy by asking, "How likely is it that something bad will happen?" The more likely it is that something bad will happen, the more expensive the home insurance policy will be, and vice versa. We call these potential disasters "risk." Let’s take a look at how risky Louisiana is compared to the rest of the US.

Crime:

The crime rate in Louisiana is higher than the national average, so homeowners should be sure to secure their property by locking doors and windows and keeping entryways well-lit and unobstructed from view.

  • Average number of burglaries per 1,000 homes in LA: 7.40
  • Average number of burglaries per 1,000 homes in the US: 4.69

Weather:

Hurricanes and tropical storms can cause a lot of difficulties for local homeowners. Residents should be sure they have the proper coverage with their home insurance, and should be sure to supplement their coverage with flood insurance through the National Flood Insurance Program (NFIP).

  • Number of federally declared disasters since 1953: 75
  • Most common cause of disasters in the state: Floods
  • Average number of tornadoes in the state per year: 36.9
  • Amount paid in home insurance claims in 2016: $711,090,000

Home Values:

The estimated cost to rebuild your home will play a large role in how much your home insurance costs. In Louisiana, the average home value is lower than the national average, and this helps to keep insurance rates from skyrocketing.

  • Average home value in LA: $158,000
  • Average home value in the US: $188,900

Yes! There are currently 421 Independent insurance agents in Louisiana who are ready to help. Did you know that independent insurance agents can give you multiple policy options to choose from? That way, you'll receive completely customized coverage that addresses all of your unique insurance needs.


Popular Questions about Louisiana Business Insurance

In 2018 small businesses in Louisiana made $440 billion. If your business doesn't have insurance, you'll have to pay for claims out of pocket, taking away from your hard-earned revenue.

40% of small businesses are likely to experience a property or general liability claim in the next 10 years. Here are some things these companies have been using their insurance on:

  • Theft or burglary: Average cost per claim - $8,000
  • Water damage and freezing pipes: Average cost per claim - $17,000
  • Wind and hail damage: Average cost per claim - $26,000
  • Fire damage: Average cost per claim - $35,000
  • Customer slip and fall: Average cost per claim - $20,000

Louisiana business insurance covers the cost of claims so that you don't have to pay out of pocket for property damage, liability claims or vehicle accidents.

Here’s what a standard business insurance policy should do:

Pay for damage to your building

  • We call this “commercial property insurance.”
  • Example: A tree falls on your office building.

Pay for damage to your business property

  • We call this “business personal property insurance.”
  • Example: A fire destroys all of your computers.

Pay for damage to someone else’s property

  • We call this “general liability insurance.”
  • Example: A contractor does a poor job of installing a cabinet and it falls and breaks a homeowner's kitchenware.

Pay for someone else’s medical bills

  • We also call this “general liability insurance.” 
  • Example: A customer slips and falls on your recently mopped floor and breaks an arm.

Pay for accidents in company vehicles

  • We call this “commercial auto insurance.”
  • Example: Your salesperson rear-ends someone while driving to an appointment.

Pay for employee injuries and compensation

  • We call this “workers' compensation.”
  • Example: An employee falls off a ladder at work and can’t work for two weeks.

Even though businesses aren't legally required to have commercial insurance, there are some types of insurance that are required in Louisiana. 

You'll need workers' compensation insurance for all employees, and you'll need commercial auto insurance for all company vehicles. 

To learn more about coverage that you may need to carry, you can talk with a local independent insurance agent.

It primarily depends on how risky your business is. The riskier your business is, the higher your insurance will be. Here are two examples.

  • A sole proprietor who owns a garment hemming business: $260 per year
  •  A commercial landscaper with five employees who operate heavy machinery: $22,700 per year

Business insurance rates are determined by several variables. The crime rate in your area, the liability risks in your industry, and common workplace hazards will influence your rates. Talk to an experienced insurance agent to find the best business insurance for your unique needs.

It’s usually wise to work with an independent insurance agent in Louisiana, since they have access to multiple insurance companies. Sometimes it's difficult to find an insurance company that will cover your business.

  • There are 421 independent agents in Louisiana who are ready to help.
  •  In 2017 our agents helped 2,855 people.

Popular Questions about Workers' Compensation in Louisiana

Employers are required to purchase workers’ compensation insurance even if they have only one employee. All full-time, part-time, seasonal and minor employees must be covered beginning on their first day of employment. 

In Louisiana, subcontractors and certain independent contractors may be considered employees if they perform substantial labor in pursuit of the employer’s trade, business or occupation. Sole proprietors and corporate officers are included in Louisiana workers’ compensation coverage, but can choose to exclude themselves if they own at least 10% of the business. 

Domestic employees, most real estate agents, uncompensated officers and directors of some nonprofit organizations, public officials, and volunteer workers are exempt from Louisiana workers’ compensation coverage. 

Louisiana has a diverse economy that is driven by its gulf location and busy Mississippi River port. For that reason, the state has some unique exemptions from workers’ compensation coverage, including the following:

  • Musicians and other performers who are providing services related to a performance contract
  • Employees who are covered by the Federal Employers’ Liability Act, the Longshore and Harbor Workers’ Compensation Act, or the Jones Act
  • The crew of an airplane working in crop dusting or spraying operations
  • Any person performing work related to the exploration, development, production or transportation of minerals (oil and gas workers)
  • Employees of railroads or other forms of transportation in interstate or foreign commerce

Employers can purchase Louisiana workers’ compensation insurance from private insurance companies, or they can self-insure. Louisiana has a competitive — or private — workers’ compensation insurance market. This means that employers can purchase it from any private insurance company that is authorized to operate in the state.

Because Louisiana has a large number of workers in high-risk occupations, the state created the Louisiana Workers’ Compensation Corporation (LWCC) in 1992. It is a private, nonprofit insurance company and the largest workers’ compensation carrier in the state. It provides workman's comp insurance to businesses in high-risk industries where private insurers may not be willing to provide coverage.

Louisiana workman's comp benefits include medical care for an injury, wage replacement, rehabilitation services and death benefits. 

The law covers both mental and physical injuries from accidents or occupational disease. The event causing the injury must arise out of and be within the scope of employment, regardless of who is at fault.

Medical bills
Example: A waiter suffers severe burns and needs to be taken to the hospital.

Wage replacement
Example: An employee needs to miss three days of work to recover from a back injury that happened on the factory floor.

Death benefits
Example: A coal miner's family receives benefits after a work-related accident.

Classification code: The National Council on Compensation Insurance (NCCI) assigns a risk classification code to every occupation in the state. Each classification code represents employers with similar exposures. The codes are used to classify workers’ compensation rates, based on the loss experience of employers within each code. 

In the example below, you can see that masons in Louisiana use the classification code 5022.

Example: Mason = 2051

Base rate: Each classification code is assigned a specific dollar amount — or base rate — that is determined by how hazardous the occupation is for workers. The base rate is used to determine an individual employer’s full workers’ compensation premium. Base rates are revised each year.

In the example below, we use the base rate of $4.75 for a mason in Louisiana. 

Example : Mason = $4.75

Calculation:

Base rate x (Payroll/$100)

  1. $100,000 Payroll / $100 = $1,000
  2. $1,000 X $4.75 (base rate) = $4,750 

Estimated workers' comp premium: $4,750