The Best Cheap Car Insurance in Louisiana for 2021

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Liability-only auto insurance only covers third-party damages and medical costs if you’re at fault in an accident. It doesn’t cover your own vehicle or medical expenses. Therefore, it’s advisable to purchase collision and comprehensive coverage for higher levels of protection.

Most states have a minimum liability requirement. In Louisiana, Southern Farm Bureau offers the cheapest average annual premium for both the state minimum and a higher 50/100/50 coverage level.

Average Cost for Liability Coverage

MoneyGeek used a combination of relevant factors like affordability, claims experience, customer satisfaction and financial strength to rank the best car insurance companies in Louisiana. In calculating scores, MoneyGeek considered the results of J.D. Power’s U.S. Auto Insurance Study and AM Best's financial strength ratings and evaluated industry standards for rating and reviewing insurance providers. Every criterion was ranked equally to formulate the final scores out of 100.

While USAA scores highly in many areas, this provider is only available to military members, veterans and their families.

Market Share by Company

The National Association of Insurance Commissioners lists the top auto insurance companies who insure the most people in Louisiana. The top three are State Farm, Progressive and Allstate as shown in the table below with the percentage of residents insured by each company.

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The cost of auto insurance premiums depends on factors specific to the driver. MoneyGeek calculated Louisiana’s average rates for comprehensive and collision coverage for a typical driver, defined as a 40-year-old male with a Toyota Camry and a clean driving record. Your costs can be significantly higher or lower than the state averages depending on your age, credit score, driving history and location.

• Average Driver: $3,041
• DUI: $4,953
• Speeding Ticket: $3,825
• Poor Credit Score: $5,829
• Seniors: $3,170
• Students: $6,731

2,349 people died in alcohol-related car accidents in Louisiana from 2009-2018 and 2.3% of drivers in Louisiana say they've driven after having too much to drink in the past 30 days. Louisiana drivers can face various penalties if they are convicted of a DUI. This can include jail time, fines, license suspension and more. Practicing safe driving habits and completely avoiding drinking and driving is the best way to avoid increases to your insurance rate due to a DUI. The table below shows the approximate cost per month for the average driver with a DUI in Louisiana.

Average Car Insurance Rates With a DUI

A DUI on your driving record can affect your chances of getting cheap car insurance in Louisiana for at least ten years. There are more costs to a DUI other than an increase in auto insurance premiums. Protect yourself by preventing a DUI in the first place to get the best and most affordable auto insurance that fits your budget.

Tickets for speeding and distracted driving can stop you from getting cheap car insurance rates in Louisiana. There were 192 fatal car crashes caused by distracted driving between 2011 and 2015, recorded by the Louisiana Highway Safety Commission. The table below features what drivers in Louisiana can expect to pay for auto insurance after receiving a ticket for speeding or distracted driving.

Average Car Insurance Rates With a Ticket

Distracted driving is much more than using or talking on your cell phone. It also includes eating, drinking, playing with the radio and talking to passengers. Anything that takes your eyes or attention off the road is considered a distraction. Avoid distracted driving to keep your auto insurance as affordable as possible.

Credit scores are used to help determine what your auto insurance premium is, so having bad credit can mean that you’re not eligible for the cheapest car insurance rates in Louisiana. According to Experian, the national average credit score was 703 in 2019, and the average score in Louisiana was 677. So, there’s a good chance that a driver in Louisiana will have a credit score lower than the national average. You can see below what the average monthly cost is for a driver with bad credit in the state.

Average Car Insurance Rates for Drivers With Bad Credit

Determining your ability to pay premiums along with the likelihood of you filing claims are the main reasons why auto insurance companies in Louisiana use credit scores to determine rates. Raising your credit score can be helpful if you want to get a better rate on your car insurance.

10.1% of drivers involved in fatal Louisiana accidents in 2017 were age 65 or older. Senior drivers in Louisiana will have to renew their driver’s license in person and submit to an eye exam. In some circumstances, they may need to take a written test once they turn 70. Seniors may also find that they no longer qualify for the cheapest auto insurance rates as they age. As you can see below, the approximate rates vary depending on the company when getting car insurance quotes for seniors in Louisiana.

Average Car Insurance Rates for Seniors

Older drivers may find that their reflexes are slower, their vision is worsened and reaction times are reduced as they age. All of these factors are reasons why seniors don’t always get the most affordable auto insurance premiums in Louisiana. Seniors should practice safe driving to get cheap car insurance.

Prepare for a jump in premiums when you add your teenager to your auto insurance policy. Still, it is important to shop around because prices can vary greatly. Keep an eye out for auto insurance discounts like full-time students who have a B average or higher, successful completion of a safe driver course and college students who go to college at least 100 miles away from home.

Unless your child has become a permanent resident of another state, most companies will not require you to make any changes to your policy when your child goes to college. The rates shown below are estimates on how much you can expect to pay with a young driver on a family plan.

Average Car Insurance Rates for Students

Louisiana has around 13,000 active-duty military personnel and approximately 267,938 veterans. If you are a veteran or an active duty member of the military, be sure to shop around to get the best rate on your car insurance. Companies like USAA or AFI specialize in military and veteran families. However, many other insurance companies offer discounts as well.

If you are a permanent resident of Louisiana on active duty outside the state, you can renew your license (except a commercial license) by mail. If you don't, it will still be valid for 60 days after you return home from deployment.

If you lose your license while stationed outside the state, you can apply for a duplicate license by mail by following a few license replacement steps. Your best bet is to have your license flagged as "military" in the Louisiana DMV computer system as soon as you enter the Armed Forces. If you are a resident of another state temporarily stationed in Louisiana, you can keep your license from your home state.

Average Rates for Louisiana service members

25 years$1,945
50 years$1,489

25 years$1,846
50 years$1,518

Expert Advice on Finding Cheap Car Insurance in Louisiana

To help you find credible and accurate information on car insurance in Louisiana, MoneyGeek gathered expert advice from trusted professionals. The perspectives and opinions expressed are those of the individual contributor.

1. What steps can drivers in Louisiana take to find affordable car insurance?

   Mark Ratchford

   Many popular websites that offer “side by side” comparisons of different auto insurance companies are run by, or financed by, one of the insuring agents. They may not scan the entire market (i.e., may strategically omit certain insurers) and/or they may have a financial interest in steering you to a particular insurer. So, be careful that you’re not being misled by a comparison website with a hidden agenda.

   It is well-known that Louisiana has among the highest auto insurance rates in the country (I believe we are currently 2nd most expensive, trailing only Michigan). So, auto insurance will be a bigger “hit” on your monthly budget here than in most states. Maintaining a strong driving record is relatively more important in Louisiana than in other states because of this.

   I’d suggest comparing at least 4 or 5 different insurance companies to make sure you are getting a good deal. I’d also suggest contacting these companies directly and not going through one of the 3rd party websites to obtain a quote.

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Mark RatchfordProfessor of Practice - Freeman School of Business at Tulane UniversityREAD ANSWERS

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About the Author

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Mandy Sleight is a freelance writer and a licensed insurance producer since 2005. She has extensive knowledge in property and casualty insurance as well as life and health insurance. She writes on topics including insurance, sustainability, budgeting, nutrition, and fitness.

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