New Orleans Automobile Insurance

New Orleans automobile insurance is required in the state of Louisiana, so you want to make sure you go a little beyond basic knowledge. That way you can ensure you have the proper insurance coverage when driving your automobile throughout New Orleans. Plus, you can resolve any questions you have.

Many of the questions that individuals throughout New Orleans, LA have to do with such items as leasing cars, cancellation of an old insurance policy in order to buy a new New Orleans auto insurance policy, and what is needed when you buy that new New Orleans automobile insurance policy for you and your automobile.

By knowing the answers, you can manage your New Orleans car insurance much better. You will know what you can and cannot do. This also means that you can feel more confident about doing such things as leasing a car.

Leasing an Automobile

You will require New Orleans auto insurance on a leased automobile just like you would if you were buying the automobile. You may find that the dealership or financial institution will require you to insure the vehicle. And what they will require will be more than liability. They will require you to have comprehensive and collision. This is in addition to the minimum liability insurance that is required by Louisiana.

You may also find that your New Orleans auto coverage company will require GAP coverage as well. GAP coverage protects you if you are upside down on your automobile loan. So if your automobile has a worth of $10,000, but you owe $2,000, you may need GAP coverage. This insures the interest of the finance company. If the vehicle were to be totaled, they would be at a loss when needing the balance due on the car.

Your New Orleans vehicle insurance company will only replace the car up to its worth. That is why GAP coverage can come in handy. It keeps you from having to pay the difference between its worth and what is left on the loan out of your pocket.

But even if you are not leasing, your insurer may still require that you have full Louisiana liability coverage and possibly GAP coverage. Because the finance company or car dealership technically owns the vehicle, they have the right to request this. If the car were to be totaled in an accident, the loan needs to be paid off.

So whether you are buying or you are leasing, the rules are technically the same. You will always want to clarify with the dealership or finance company what kind of coverage you are required to have. If you don't have the correct coverage, this could lead to consequences that are imposed by the entity that actually owns the vehicle.

Cancellation vs. Nonrenewal

When you do not want your current New Orleans, LA insurance policy anymore, the word "cancel" is not the correct term. The correct term is actually "nonrenewal." Cancellation occurs when the insurance company is the one that cancels. They usually terminate due to non-payment, fraud, or suspension or revocation of your driver's license.

Nonrenewal is when you decide that you no longer want your New Orleans, Louisiana automobile coverage. In this case, you may want to write a letter to your insurer and tell them that you are moving on to a new New Orleans automobile insurance company. Don't hesitate to tell them why you are really leaving, but be professional and to the point.

Buying Your New Policy

When you buy your new New Orleans auto insurance, you will need to provide your basic information. This includes your name, address, contact information, and the specifics of your automobile. These specifics can include the make, model, and year of your automobile.

The make, model, and year are very important because the New Orleans insurance company uses this information to determine your premium. For instance, they look up the vehicle information and they find the safety ratings, how heavy the vehicle is, and the standard safety features. If there are any safety features that go beyond the standard features, you will need to tell your insurer so that they can apply this information and lower your rate.

You may also need to provide your history with past insurers and you will need to include information about any other drivers on the policy. Don't be surprised if the insurer asks you for permission to check your credit history and your driving record. These are two more factors that have an influence on your premium.

So as you can see, there are some aspects of New Orleans automobile insurance that are good to know. That way if you find yourself in any particular situation, you have an answer. You can feel more secure about your automobile coverage that way.

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