There are two key components to finding the best car insurance in Louisiana: doing your homework and comparison shopping for the best coverage at the best price.
Plenty of factors influence premiums, including your age, gender, marital status, type of car, and driving record, but you can position yourself to negotiate the best possible deal by understanding how your locale affects insurance costs.
Use the information below to understand the costs of car insurance in Louisiana and learn how to get ideal coverage at a rate that won’t break the bank.
Average Cost of Car Insurance in Louisiana
Louisiana ranks as the third-most-expensive state for auto insurance, just behind New York and New Jersey.
New Orleans and Baton Rouge rank as the second- and fifth-most-expensive cities in America for car insurance, with average expenditures of $4,310 and $3,364 respectively, though New Orleans still runs less than half the going rate of $10,723 in Detroit. Michigan.
|Average Cost of Car Insurance in Louisiana||$1,232|
|Average Cost of Car Insurance in Arkansas||$906|
|Average Cost of Car Insurance in Texas||$1,109|
|Average Cost of Car Insurance in Mississippi||$994|
|Countrywide Average Cost of Car Insurance||$1,009|
Consumers trying to work out how much car insurance is in Louisiana, and in their community, should understand that various factors influence these costs, with population density and traffic conditions being the most significant.
Louisiana ranks 31st among the states by land area and sports over 4.5 million inhabitants. Throughout most of the state, population density is modest, averaging 107 people per square mile according to the NAIC.
Its metro areas have a much higher population density, however, and host 74.4 percent of the state’s inhabitants. New Orleans alone has a population density of 1,965 people per square mile.
Keep in mind that insurance providers may set higher rates in the areas of Louisiana that are more densely populated.
As the NAIC report on traffic density notes, Louisiana’s traffic density is 785,616, calculated as the number of vehicle miles traveled per highway mile.
This number is slightly over the countrywide average figure of 724,348. The NAIC assessment of vehicle miles per registered vehicle in the state comes out to 12,790, just over the national average of 12,010.
Louisiana experiences fatal accidents at a rate of 1.53 per 1,000 registered vehicles, just over the national rate of 1.08.
The slightly higher figures for both traffic density and fatalities account in part for Louisiana’s higher car insurance rates.
Vehicle Theft Rates
According to FBI statistics, Louisiana experiences a rate of 220.8 vehicle thefts per thousand people, a middling rate nationwide.
According to the NCIB’s Hot Wheels report, the vehicles most likely to be stolen in Louisiana are family sedans, which occupy six of the top ten spots, and full-size pickup trucks, with Chevrolet and Ford pickups topping the list.
When purchasing a new vehicle, you might want to consider avoiding those makes and models that occupy the top spots on the list.
Disposable Income in Louisiana
Louisiana doesn’t rank particularly high for disposable income nationwide.
The state’s per capita disposable income of $37,787 comes in below the countrywide average of $40,859 and the per capita figure of $41,090 reported in neighboring Texas according to the NAIC.
It’s still well above the disposable income of neighbors in Arkansas and Mississippi at $33,929 and $31,365 respectively.
Insurance companies look at the correlation between disposable income and higher priced vehicles and frequently adjust their premiums accordingly.
Companies with the Best Car Insurance in Louisiana
No matter the make and model of your vehicle, it pays to shop around when looking for car insurance.
Calling companies directly is a great way of assessing their service right off the bat and accessing the information online can be quicker and easier.
Louisiana’s Department of Insurance also offers a useful online rate comparison guide.
Whichever approach you choose, you should keep these points in mind:
- Get quotes from different kinds of companies. Some companies use employee agents or sell through independent agents who work with a number of different businesses, while others deal directly with the customer.
- Don’t just shop by price. Cheaper insurance is not necessarily better insurance. Confirm that a company has a good reputation: Ask friends and relatives who have used it, check online reviews, and get in touch with the Louisiana Department of Insurance to find out if its credentials are up to date. Also, look into the company’s overall financial health by checking with independent rating agencies.
- Negotiate deductibles and ask about group insurance or low-mileage discounts if they apply. A company that knows you’re engaged in comparison shopping is likelier to go the extra mile to get your business. Higher deductibles, which are what you pay upfront before your insurance coverage kicks in, can save you money on premiums in the long run if you have the cash on hand to go that route.
Comparison shopping is simply the best way to leverage your influence as a potential paying customer and get quality coverage at an affordable price.
Listed below are some of the leading companies in Louisiana:
- Progressive: One of the biggest insurance providers in the United States, Progressive has been operating since 1937 and holds “A” ratings from a number of third-party rating institutions. It has a reputation as an innovator in car insurance, offering a wide range of comprehensive coverage packages to fit almost any budget.
- Liberty Mutual: A global force in the auto insurance market, the Boston-based Liberty Mutual is known for outstanding financial stability and over 100 years of experience in the industry. It has a diverse line of products for their North American clientele and is known for higher premiums, but also for quick and accurate claims processing.
- QuoteWizard: An online marketplace launched in 2006, QuoteWizard aggregates policy offerings on many different types of insurance for a customer base that’s over 32 million strong. Able to bring together policy offerings from a large list of partner carriers and deliver savings as high as 40 percent for its clients, QuoteWizard can also help customers get out of expensive insurance contracts and, sometimes, get prorated refunds.
- Allstate: The second-largest personal insurer in America, Allstate presently employs over 40,000 agents and operates major subsidiaries that are players in the insurance market (such as Esurance discussed below). It’s known for providing fair prices, extensive coverage, and a generally positive customer experience.
- Esurance: This Allstate subsidiary offers reliable insurance products combined with the latest in management tools to help customers enroll and track their accounts. A signature Esurance product is the DriveSense app-based monitoring system, a convenient and accessible tool that helps clients achieve savings on their premiums based on good driving habits.
- USAA: America’s fifth-largest auto insurer offers comprehensive services that extend to banking and investment. Its customer satisfaction ratings are among the best in the industry, and it’s excellent at communicating coverage options, providing planning tools, and offering secure account management apps for its clients.
- MetLife: One of the largest and oldest insurance companies in the world, MetLife operates in over 50 countries and offers affordable policies with convenient account management. Its sheer longevity and stability are a major selling point, although the coverages and discounts it offers are often of middling quality and worth comparing with other carriers.
Check online for reviews of other companies that are potential contenders for the best car insurance in Louisiana.
What Is Mandatory for Car Insurance in Louisiana?
Louisiana law requires that drivers carry liability insurance on any car they own.
At a minimum, each vehicle needs the following coverage:
- $15,000 for bodily injury to one person
- $25,000 for property or vehicle damage
- $30,000 for bodily injury to more than one person
Of course, there’s nothing to stop you from getting more comprehensive coverage if it suits your needs, and doing so is often advisable.
In Louisiana, you’re expected to carry proof of insurance with you, which can take the form of an ID card issued by the insurer, a copy of the insurance policy or its declaration page, or a written statement from your insurer.
Failure to have such proof, falsely claiming to have insurance, letting your insurance lapse, or knowingly operating a vehicle without insurance all carry fines and penalties and can even lead to license suspension or revocation or the impoundment of your vehicle.
Louisiana also has a “No Pay, No Play” law that limits the damages an uninsured motorist can claim for personal injuries or property damage. No matter who is at fault, the uninsured driver can’t collect either the first $15,000 of a bodily injury claim or the first $25,000 of a property damage claim.
How to Reduce the Cost of Your Car Insurance
It’s not possible to reduce the cost of car insurance to nothing, but there are many ways to lower it:
- Deductibles: A deductible is your share of the cost of a coverage plan. Opting for a higher deductible can lead to lower premiums.
- Bundled insurance: Louisiana insurance companies often provide discounts on insurance if you enroll in more than one type of insurance policy with them—life, car, and home insurance, for example—or if you have auto insurance through the same carrier on more than one car.
- Group insurance: It may be possible to save money by being part of a group insurance plan through your employer.
- Insurance on older cars: A car that’s worth less than 10 times the premium payments may not be worth insuring at more than the minimum liability level. You can check a vehicle’s value at sites like Kelley Blue Book.
- Student and senior discounts: Most companies provide discounts to full-time students with a B or better grade average and to senior adults. The details vary from one company to another.
- Low-mileage discounts: Companies often offer discounts to drivers who drive less than the average number of miles per year.
- Defensive driver training: Companies often discount premiums to drivers who can prove the completion of a current defensive driving course.
- A good credit rating: Many insurers use credit ratings to price their policies. It’s one of many reasons to maintain a solid credit history.
When you’re shopping for the best car insurance in Louisiana, you should have the following on hand:
- Vehicle information: Gather your car’s make, model, and year, along with its Vehicle Identification Number (VIN), safety and anti-theft features, and expected annual mileage.
- Household information: Enumerate the number of drivers in your household, where you live, parking arrangements, and the deductibles and levels of liability coverage you want. You should base the last two items on what you can afford to cover out-of-pocket in the event of a loss and the total value of your assets.
- Personal information: You also need your name, age, gender, and marital status, driving record, safe-driving courses completed, and for students, their Grade Point Average.
What Can Increase the Cost of Your Car Insurance?
Just as there are factors that can decrease the cost of your premiums, there are also factors that can increase it:
- Age and marital status: Single male drivers under 25 and single female drivers under 21 tend to be more associated with recklessness behind the wheel and, consequently, have much higher insurance costs.
- Where you live: Urban areas tend to have higher accident and theft rates due to their greater population density. Therefore, urban residents may incur higher premiums.
- Type of car: If you’re driving a type of car commonly associated with higher collision rates, such as a luxury or high-performance sports car, your premiums go up.
- Driving record: Having tickets and at-fault accidents on your driving record, even if they’re older than a year or two, can lead to higher insurance prices.
The best way to minimize cost when considering the cost of car insurance in Louisiana is to keep a clean driving record, be an informed consumer, and shop around as much as you can for the best available combination of quality coverage and affordable pricing.
Following these recommendations and doing business with reputable, top-rated insurers should give you considerable confidence in your insurance decision.
*While we make every effort to keep our site updated, please be aware that “timely” information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.