How Much Is Car Insurance in Louisiana? (2023)

Several factors, like your age, location, coverage, credit score and driving history, can influence how much your car insurance costs in Louisiana. For example, the priciest and most affordable annual rates for full coverage policies in Louisiana are $3,355 (offered by Allstate) and $1,048 (provided by Louisiana Farm Bureau), respectively. The state also has a $234 difference in rates between younger drivers ($1,913 per year) and older drivers ($1,679 per year).

Although the average annual cost of car insurance in Louisiana is $1,493, your actual costs may differ based on numerous factors. Louisiana drivers can anticipate paying the following average prices:

• Clean record: $1,493 per year
• Speeding ticket: $2,312 per year
• Accident: $2,735 per year
• DUI: $2,755 per year

The costs mentioned above pertain to full coverage insurance policies. Minimum coverage insurance premiums are likely to be less expensive.

Louisiana's average annual auto insurance rate of $1,493 exceeds the national average of $1,054 per year by around 41%. Factors like congested traffic, densely populated urban areas and increased vehicle theft contribute to the significant insurance expenses drivers may face in the state.

Factors like age and driving history could also explain Louisiana's expensive car insurance premiums.

You may find that the average cost of car insurance does not accurately reflect the actual expenses you may incur due to price fluctuations between insurance companies. For example, Louisiana Farm Bureau offers the most affordable car insurance in Louisiana for minimum coverage, with an annual cost of $484 ($1,048 for full coverage). On the other hand, Allstate has the highest prices, with a minimum coverage policy costing $1,160 annually ($3,355 annually for full coverage).

While liability-only insurance is cheap, comparing quotes from different insurers can help you find the cheapest full coverage insurance.

Auto insurance costs in Louisiana rise as liability limits increase. Moreover, the inclusion of comprehensive and collision insurance on full coverage plans can further raise the price.

For example, Louisiana drivers generally pay $1,863 for full coverage with higher liability limits, whereas the minimum legally required coverage costs around $596. Opting for a higher deductible may result in long-term savings with a full coverage policy.

Minimum coverage car insurance in Louisiana only offers the lowest liability limits and does not include collision or comprehensive coverage.

However, insurance providers may offer policies with higher liability limits, such as 100/300/100 or 50/100/50. Opting for liability limits of 100/300/100 provides the following coverage:

• $100,000 for bodily injury liability per person
• $300,000 for bodily injury liability per accident
• $100,000 for property damage liability

A company's maximum liability is typically set at 300/500/300. Liability insurance covers harm or injury caused to others, while comprehensive and collision insurance covers the costs of damages to you and your vehicle. These coverage options combined make up a full coverage policy.

The price of your car insurance can fluctuate based on your age, especially when it comes to car insurance for new drivers. Here are the full coverage rates in Louisiana by age:

• 22–29: $1,913 per year
• 30–59: $1,493 per year
• 60+: $1,679 per year

Premiums for drivers in their 20s are typically high, while rates for drivers between the ages of 30 and 59 remain relatively stable until they reach the age of 60.

Compared to other age groups, teens generally have higher insurance costs. In Louisiana, a 16-year-old on a family plan pays an average of $7,393 per year for car insurance, while an individual policy for a 16-year-old costs around $12,523 per year.

For instance, in Louisiana, a 19-year-old driver on a family plan typically pays $6,101 for car insurance. On the other hand, a 22-year-old driver on a similar plan would pay around $4,673. Comparing quotes from several different insurers can assist you in finding the most affordable car insurance for teenagers in Louisiana.

Auto insurance rates in Louisiana can vary significantly by gender. Family policy costs for a 16-year-old female average $6,612 per year, which is about $781 less expensive than it would be for a male teen.

In Louisiana, insuring a new car costs around $2,368 per year, which is about 20% more expensive than insuring an older vehicle at an average yearly rate of $1,970. This is due to the increased actual cash value (ACV) of new cars and their higher repair costs, which may lead to higher insurance claims payouts.

Insurance providers consider your car's ACV when resolving collision and comprehensive claims. Typically, insuring an older vehicle leads to cheaper premiums as fewer claims are filed, resulting in reduced payouts by the insurance company. The correlation between your car's ACV and insurance premiums allows for potentially less expensive coverage for older vehicles. However, if you have a newer vehicle, it's best to buy full coverage insurance as it provides liability coverage for other people's injuries and damages to your own car.

Auto insurance costs in Louisiana are more expensive for drivers with traffic offenses than those with clean driving histories. On average, motorists will pay the following rates in Louisiana:

• Clean record: $1,493 per year
• Speeding ticket: $2,312 per year
• Accident: $2,735 per year
• DUI: $2,755 per year

Insurance costs tend to rise in proportion to the severity of the driving infraction. For instance, a DUI offense will likely result in higher insurance costs than a speeding ticket. Shopping around and comparing prices from various providers can help you find the cheapest car insurance in Louisiana, even if you have a poor record.

Your credit score often influences how much car insurance costs in Louisiana. Drivers with poor credit typically pay $2,993 annually, whereas those with excellent credit only pay $1,597. Here's what you can expect to pay based on your credit rating:

• Excellent: $1,597 per year
• Good: $1,864 per year
• Fair: $2,242 per year
• Below fair: $2,535 per year
• Poor: $2,993 per year

We recommend actively shopping around to find affordable auto insurance in Louisiana for drivers with poor credit. Insurance companies may adjust their rates based on the customer's credit score.

Average car insurance rates in Louisiana can vary significantly based on the specific city you live in. For example, Shreveport drivers could get the most affordable full coverage insurance for an average of $1,450 per year, while New Orleans residents would pay an average of $2,328, the highest in Louisiana.

Urban areas like New Orleans usually have higher insurance rates due to their higher populations and increased traffic.

Because several factors affect pricing, determining exactly how much car insurance costs in Louisiana can be challenging. We have answered some frequently asked questions to give you a general idea about your potential costs.