Why Is Car Insurance So High in Louisiana?

The average car insurance cost in Louisiana is $3,041 per year, which is more than twice the national average rate of $1,424 per year. Auto insurance in Louisiana may be expensive because of the state’s highway density, population, vehicle theft rates and auto-related lawsuits.

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Last Updated: 5/27/2022
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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.

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Key Takeaways

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Louisiana has a higher-than-average vehicle theft rate, which increases the cost of auto insurance; there are about 231 thefts per 100,000 people in the state.

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One of the reasons premiums go up is because Louisiana has a high number of auto-related lawsuits.

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Personal factors like your age and credit score also play a role in determining the cost of your policy.

Why Louisiana Car Insurance Rates Are So High

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.

High Highway Density

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.

High Urban Population Density

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.

Above-Average Vehicle Theft Rate

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.

High Number of Auto-Related Lawsuits

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.

Why Louisiana Car Insurance Might Be Expensive for You

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.

Where You Live

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.

Average Car Insurance Rates in Louisiana: State & Cities

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  • Location
    Annual Premium
  • Louisiana’s State Average
    $3,041
  • Baton Rouge
    $2,361
  • Lafayette
    $2,229
  • New Orleans
    $3,380
  • Shreveport
    $1,791

Insurance Company

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.

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Age

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.

Average Car Insurance Rates by Age in Louisiana

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  • State
    Average Driver (40-Year-Old)
    16-Year-Old
    25-Year-Old
  • Louisiana
    $3,041
    $8,852
    $3,796

Driving Record

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.

Average Car Insurance Rates by Driving Record in Louisiana

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  • State
    No Violation
    Speeding Ticket
    Accident
    DUI
  • Louisiana
    $3,041
    $3,825
    $4,459
    $4,953

Credit Score

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.

Average Car Insurance Rates by Credit Score in Louisiana

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  • State
    Excellent Credit Score
    Fair Credit Score
    Poor Credit Score
  • Louisiana
    $2,689
    $4,417
    $6,874

Car’s Make and Build

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.

Auto Insurance Calculator

State

Louisiana

Age

30-65

Driving Record

Clean

Credit Score

Excellent

Vehicle Type

Compact

Vehicle Year

2020

Liability Coverage

State Min

Comprehensive and Collision Insurance

None

Gender

Female
Average Annual Auto Insurance Rates

Click the section of the wheel in your price range to see options.

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on average

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Click your preferred price range to see company options.

Click an insurer below to visit their review page or continue to your personalized quote.

Company

Average Annual Rates

1.

USAA

$720

2.

Southern Farm Bureau

$754

3.

State Farm

$1043

How to Save on Car Insurance in Louisiana

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.

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    Find a policy that fits your needs.

    Be sure to compare auto insurance rates across different companies to find the best option for you. MoneyGeek’s tool can help you get started.

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    Bundle to save.

    Many insurance companies offer home and auto insurance bundling options that include discounts on rates.

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    Figure out what discounts your insurance provider offers.

    If you love deals, there are ways to find car insurance discounts available to you according to your age, behavior and more.

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    Get a lower premium by increasing your deductible.

    You can lower the cost of your premiums if you increase your deductible. Keep in mind that you’ll pay more out-of-pocket if you need to file a claim.

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    Pay-per-mile is an excellent option if you don’t drive frequently.

    Consider pay-per-mile car insurance if you drive fewer than 12,000 miles per year or just don’t drive often.

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    Ask yourself how much insurance you need to get the best coverage.

    It might be more cost-efficient to remove comprehensive coverage if your car’s cash value is less than 10% of your premiums.

Frequently Asked Questions

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

About the Author


expert-profile

Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.