The two most frequently asked questions about Louisiana auto insurance coverage have to do with price and coverage. What most people don’t realize is all companies have different rating factors that affect their car insurance premium structure.

Price seems to be the thing on everyone’s mind. John Shaver, the “Louisiana auto insurance coach” tells me the number one question he hears is “How much is it?” He says that people don’t realize that coverage is the most important thing. That is the thing they should be concerned with the most.

For instance, let’s take a common misconception. If you get in an accident and don’t have the right coverage (enough coverage), most people mistakenly believe that the court will just hold you accountable up to the limits of the policy and call it a day. Not so.

What people don’t realize is that in the State of Louisiana, a judgment (a court ordered payment) can follow you for 10 years or more! That’s a hit, especially if we are talking about a young driver that is just getting started.

A ten year judgment can strap their wages and keep them in a hole for a long, long time. And why? Because no one took the time to explain the concept of having the right coverage and what could happen if you didn’t.

Another big misconception about price and coverage is what factors are involved in how a Louisiana insurance company figures your premium. It’s not just reading a figure out of a manual. Again, John Shaver explained several factors are involved.

In no special order, they are, how the car is used (distance traveled and for what purpose). Another factor is who is going to be driving the car. The insurance companies really want to know all about that person. The makeup of the household is another important factor. Are there any young drivers? How are they? Are they good students (a grade point average of 3.0 and above)?

Naturally, another factor is accidents. Have there been any previous accidents. Then there is something different. How about your credit score? Yes, Louisiana car insurers want to know your credit score. It tells them a lot about your character and your track record on paying bills.

An “insurance coach” is there to help you sort through this sea of information, make sense of what these companies are saying, and point you in the right direction. Now you can put your mind and wallet at ease about your Louisiana car insurance. You know you have the right protection you really need. And, you have saved money. It makes you look like you really did your homework and are one shrewd shopper.