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 12% 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.
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.
While the minimum liability coverage requirements are lower than many other states, it’s highly advisable to consider increasing your coverage to more comfortable levels for added peace of mind. A basic coverage of $30,000 for injuries may not be sufficient in case of serious accidents, considering high hospital costs across the country. You don’t want to find yourself personally responsible for third-party injuries because your coverage ran out.
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 flood damage in certain parts of the state.
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 car 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 three companies consistently come as the cheapest in most cities including, New Orleans, Baton Rouge, Shreveport and Lafayette.
- GEICO
- Louisiana Farm Bureau
- State Farm
While your zip code influences the premium you are charged, this disparity is most notable in metro New Orleans, where rates are approximately 50% higher than the state average. This is primarily due to higher population density, increased accident rates, and a higher number of legal claims.
By maintaining a good driving record, qualifying for various discounts, and conducting diligent comparison shopping, you can find quotes lower than the state average. 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.
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.