The Pelican State has one of the highest car insurance rates in the US for both basic state required liability only and full coverage. The number of uninsured drivers at 11.7% is lower than the national average. Louisiana imposes strict penalties for driving without insurance. If they are caught, motorists can face fines, suspension of license plates and registration, vehicle impoundment and associated costs and they may not be allowed to claim for their losses in a case of accidents due to “no pay, no play” law.
Louisiana Auto Insurance Laws and Requirements
Here are the minimum liability limits set and enforced by the authorities;
- $15,000 for bodily injury or death per person.
- $30,000 total for bodily injury or death per accident.
- $25,000 for property damage.
The minimum required liability coverage in LA is lower compared to many other states. Thus, it’s strongly recommended to contemplate raising your coverage limits to levels that offer greater comfort, providing an extra layer of reassurance. Given the substantial healthcare expenses throughout the nation, relying solely on basic coverage might prove inadequate in scenarios involving significant accidents. It’s crucial to avoid a situation where you become personally responsible for injuries and damages sustained by others in an accident you caused due to exhausting your liability vehicle insurance coverage limits.
Louisiana’s coastal location exposes it to unique insurance risk factors such as hurricanes and floods. Motorists may need to consider ways of protecting themselves, such as buying Comprehensive coverage for such damages. Collision and Comprehensive coverage together offer physical damages protection for your own automobile.
Automobile Insurance Costs in Louisiana
The average premium for state required minimum liability coverage is $815, which is $193 more than the US average. Full coverage vehicle insurance is $2,909 on average and it is $895 higher than the country average. Overall, Louisiana is one of the top 5 most expensive states in the country for car insurance.
The state’s litigious culture is often cited as a significant contributing factor for expensive vehicle insurance premiums. Louisiana residents file more personal injury lawsuits compared to most other states, especially in the New Orleans Metropolitan area, which houses a quarter of the state’s population. This litigious culture increases the number and size of the claims as well as legal costs.
Another contributing factor is the poor condition of roads and highways in this state. Bad road conditions often lead to more accidents.
Most Affordable Auto Insurers in Louisiana
Quotes are narrowly spread here in comparison to how it usually fluctuates elsewhere and yet prices can be twice different between the two extreme ends. So, knowing who offers the cheapest vehicle insurance rates puts you on the right track for a winner quote. Below companies consistently come as the cheapest in most cities including, New Orleans, Baton Rouge, Shreveport and Lafayette.
- State Farm
- Farm Bureau
- Safeway Insurance
- Geico
- Progressive
While your zip code influences the premium you are charged, this disparity is most notable in metro New Orleans, where rates are approximately 56% higher than the state average. This is primarily due to higher population density, increased accident rates, and a higher number of legal claims.
Of course, price isn’t the sole determining factor when choosing an insurer, but it is prudent to start by seeking affordable quotes. This approach ensures that premiums remain reasonable and within your budget. The majority of US carriers are highly reliable and will provide the support you need. However, it’s still important to ensure that you select one of the top automobile insurance companies known for prompt claims handling and excellent customer service, especially in states like Louisiana where there is a high chance you may be sued if you are ever involved in an accident.
Important Louisiana Car Insurance and Driving Facts
- In Louisiana, uninsured drivers can’t claim the first $15,000 for bodily injuries and $25,000 for property damages under the “No Pay, No Play” law, even if the other driver is at fault. The law’s exceptions include legally parked cars, out-of-state drivers abiding by their own rules, cases with intoxicated or intentional actions by the other driver, hit-and-run incidents, and passenger claims except when the passenger co-owns the uninsured car. This law further highlights the importance of buying at least the state required minimum liability coverage car insurance in LA.
- Vehicle insurers in Louisiana must offer Uninsured Motorist Bodily Injury and Medical Payments coverage at below minimum limits but motorists can refuse these options in writing.
- Uninsured motorist bodily injury: $15,000 per person and $30,000 per accident
- Medical payments: $1,000 minimum
- Louisiana has one of the worst drivers in the country based on intoxicated, distracted, careless and dangerous driving patterns and statistics. It holds the third highest rate of fatal accidents caused by distracted driving and the eighth highest rate of fatal accidents involving drunk drivers. The state also reports a significant number of fatal accidents involving drowsy drivers.
- According to Forbes, Louisiana car insurers often impose higher rates on drivers with poor credit, with individuals having bad credit paying an average of 79% more for auto insurance. This is extra noteworthy considering that a DUI conviction only leads to an average premium increase of 44% in this state.
- In 2022, Louisiana’s estimated seat belt usage ratio stood at 86.1%, which remained below the national average of 91.6%.
By maintaining a good driving record, qualifying for various discounts, and conducting diligent comparison shopping, you can find affordable quotes. Whatever you do, you shouldn’t take the first quote you receive and get a few more from many other competitive and reputable companies in this state.