Why Is Car Insurance So High in Louisiana?

There are a few reasons why Louisiana car insurance may be relatively high compared to the national average. Certain factors in Louisiana can make your auto insurance more expensive, including the state's theft rates and population density.

Individual factors can also influence your premiums. In this guide, MoneyGeek uses a sample driver profile of a 40-year-old with full coverage and a clean driving record. We break down the factors that play a role in the cost of insurance rates in Louisiana and some ways you can save on premiums.

• Why Is Louisiana Car Insurance Expensive
• Why Is Car Insurance in Louisiana Expensive for You?
• How to Save on Louisiana Insurance
• Frequently Asked Questions

Based on MoneyGeek’s research, Louisiana has the third most expensive car insurance rates in the country, averaging $3,041 annually. Auto insurance rates have also become more costly over time, regardless of where you live.

State-specific factors like high urban population density and auto-related lawsuits are some reasons why car insurance is expensive in Louisiana.

Louisiana has a high highway density of 8.80. A state with dense highways is more prone to vehicular crashes, so drivers are more likely to file claims and premiums go up accordingly.

MoneyGeek’s data shows that 73% of Louisiana’s population lives in urban areas, which increases auto insurance rates. More people in densely populated urban areas means a higher rate of accidents, vandalism and theft, which result in drivers filing more claims.

Louisiana has an above-average theft rate compared to other states at about 231 thefts per 100,000 people. These thefts increase the overall cost of auto insurance premiums.

Louisiana is more litigious than other states when it comes to auto-related lawsuits. In Louisiana, judges determine the outcomes of cases under $50,000, and a jury decides for cases above that amount.

Louisiana auto insurance rates are expensive, but more personal factors can also play a role. Factors such as your zip code, car model, credit score, driving record, insurance company and age influence the cost of your premiums.

Your location affects your auto insurance cost. While Louisiana has one of the highest car insurance rates in the U.S., the city where you live can make it more expensive, too.

If you live in Louisiana, the cheapest city to get auto insurance rates is Shreveport, costing $1,791 per year, on average. Meanwhile, New Orleans is the most expensive city to purchase auto insurance. Rates average around $3,380 per year.

Choosing the right auto insurance provider can make all the difference. MoneyGeek listed the most affordable car insurance providers in Louisiana — as well as the best auto insurers in Louisiana — to help you find reliable coverage at a reasonable cost.

If you’re looking to compute your premiums, you can get a close estimate using MoneyGeek’s Louisiana car insurance calculator.

Generally, drivers under the age of 25 are considered risky drivers. Compared to a 40-year-old driver, 16-year-olds in Louisiana pay almost three times the price for car insurance due to their inexperience. Clearly, your age can affect your car insurance rates.

If you have a clean driving record, the cost of your auto insurance policy will be significantly cheaper than if you have a traffic violation or DUI. Insurance companies consider those with a bad driving record to be high-risk drivers and more likely to file a claim.

In Louisiana, having a poor credit score can cause your car insurance rates to increase. Individuals with excellent credit pay almost three times less for policies than those with poor credit. The table below shows how quotes differ depending on your credit score.

Your car's make and model can also affect your auto insurance rates. For instance, car insurance for new cars is more expensive than coverage for older models. A sports car is more expensive to insure than a sedan or minivan.

You can get a close estimate of premiums for your car’s make and model using MoneyGeek’s Louisiana car insurance calculator.

Although Louisiana has one of the most expensive car insurance rates, MoneyGeek found various ways to save money in the state. It’s important to determine how much car insurance you need. You can find savings by looking for discounts, increasing your deductibles, bundling with other insurance types and comparing quotes.

MoneyGeek shares why car insurance is expensive in Louisiana by answering commonly asked questions.