Louisiana Car Insurance (The Only Guide You’ll Ever Need)

Purchasing budget-friendly car insurance anywhere in the United States can prove to be a challenge. In Louisiana, though, calling it a “challenge” is an understatement.

Nowadays, Louisiana’s insurance providers and legislators are working together to try and bring the rates in the state down to a reasonable level. Even so, residents of the Pelican State should keep an eye out for different environmental factors that can negatively impact the rates that providers can make available to them.

If you’re looking for car insurance in Louisiana, don’t feel as though you have to tackle the challenge on your own. Researching and comparing car insurance rates without a little help can make even the calmest of consumers pull their hair out.

That’s why we’re here to help. In this guide to Louisiana’s car insurance providers and rates, we’ll touch on the rates, laws, and state-wide factors that contribute to Louisiana’s infamous rates.

With our help, you’ll be able to find an insurance rate that fits into your budget and protects you from all the wiles that Louisiana’s motorways may throw at you.

If you want to start comparing ASAP, why not take advantage of our FREE online tool? You just need your zip code to get started.

Louisiana Car Insurance Coverage and Rates

There’s no other way to split it:

If you live in Louisiana, you’re paying for some of the most expensive car insurance premiums in the country.

We’ll touch on the reasons why later on in this guide. For now, let’s start by looking at the basics.

Minimum Car Insurance Requirements in Louisiana

Every state requires its drivers to meet a minimum liability coverage requirement so that each driver on the road is covered. Louisiana’s minimum required are displayed below:

In short, Louisiana requires that its drivers have the following:

• $15,000 in injury/death coverage for a single person
• $30,000 in injury/death coverage for more than one person
• $25,000 in coverage for property damage

Why do you need to meet these minimums? Because Louisiana is an at-fault state. That means that one party involved in an accident will be determined the “faulted” party. That party will then be responsible for paying for the whole cost of the accident.

Minimum coverage allows drivers a modicum of financial safety while on the road.

Forms of Financial Responsibility

Louisiana’sOffice of Motor Vehicles will not allow you to register your car with the state government unless you present a representative with proof of insurance, or a form of financial responsibility. Do note that these terms are interchangeable.

You need proof of insurance for more than just registering your car. You should always carry proof of insurance with you while on the road, just in case you happened to get pulled over. Proof of insurance ensures that you won’t be wrongly charged for driving without coverage.

Proof of insurance in Louisiana includes:

• An insurance card
• A copy of your insurance policy
• A copy of your policy declaration page
• Unencumbered negotiable securities worth a minimum of $30,000
• A surety bond worth $30,000
• A statement from your insurer that is a) printed on company letterhead, b) signed by your insurance agent or a company representative, c) completely and accurately describe the vehicle you are presently in, and d) include your VIN

Premiums as a Percentage of Income

Every year, you’ll have to dedicate a percentage of your income to your car insurance payment. When you’re doing your initial policy shopping, it’s good to know just how much money you have to spend on a policy.

In 2014, Louisiana’s annual per capital disposable personal income registered at $37,787. After residents paid their taxes, they had an average monthly budget of $3,148.

The average cost of car insurance in that same year in Louisiana came in at $1,364. Every month, then, Louisiana residents paid an average of $125 to continue their car insurance coverage.

That DPI percentage — a whopping 3.6 percent — is the highest in the United States, second only to Michigan.

Read more: Michigan Car Insurance (The Only Guide You’ll Ever Need)

Average Monthly Car Insurance Rates in LA (Liability, Collision, Comprehensive)

That said, there are different types of coverage available to all drivers in Louisiana. Take a look at the breakdown, as according to the National Association of Insurance Commissioners, below:

It’s worth noting that the national average for full coverage across the United States is $1,009.38. As you can see in the table above, Louisiana’s average annual cost of that same coverage comes in at over $400 more expensive.

Additional Liability

To continue driving home Louisiana’s expensive point, the vast majority of car insurance providers recommend that drivers — especially those operating in at-fault states — purchase more than their state’s minimum liability coverage.

Why?

Because if you happen to be at-fault in an accident, it’ll be on you to pay off both your and the other party’s expenses.

The above table makes note of the loss ratios that both Med Pay and Uninsured/Underinsured insurance have garnered in the past. These numbers are notable because they reveal how much money car insurance providers, on average, spend on claims versus how much they take in on premiums.

In short, the closer a loss ratio is to 100 percent, the more claims the company in question pays. That said, a company at 100 percent loss ratio is also losing money. Comparatively, companies with lower loss ratios aren’t paying out on their clients’ claims.

When shopping for car insurance, you’ll want to look for a company with a loss ratio somewhere in the 60 to 70 percent range.

Add-ons, Endorsements, and Riders

You can explore additional, optional coverage by considering some of the add-ons below. Click on the available links to learn more:

• Guaranteed Auto Protection (GAP)
• Personal Umbrella Policy (PUP)
• Rental Reimbursement
• Emergency Roadside Assistance
• Mechanical Breakdown Insurance
• Non-Owner Car Insurance
• Modified Car Insurance Coverage
• Classic Car Insurance
• Pay-As-You-Drive or Usage-Based Insurance

Male vs. Female Rates

There’s an old myth that claims men have to pay more for their car insurance than women do. As it turns out, this isn’t always the case:

As drivers age, though, premiums tend to even out. By the time drivers hit middle age, as you can see above, the premiums they’ll see should be balanced. In some cases, women even have to pay more than their male companions!

Cheapest Rates by Zip Code

It’s not just age and gender than can impact the premium you’re offered. Your zip code can have a significant impact on your initial rate, as you can see below:

Let’s take a closer look at how ZIP codes affect car insurance in Louisiana.

Cheapest Rates by City

Your offered car insurance rate will vary based on the city you live in:

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Best State Car Insurance Companies

If you want to start considering your different car insurance options, then you’ll probably want to look at their available rates. In this section, we’ll let you know which providers in Louisiana have the most hold over the state and which, of those applicable, have accessible rates.

The Largest Companies’ Financial Ratings

A.M. Best outlines individual insurance companies’ financial ratings, as you can see below:

Predictably, the more pluses a car insurance provider has, the more financially reliable they are. In this car, State Farm, Geico, and USAA all look fairly shiny in the eyes of A.M. Best.

Companies with the Best Ratings

Customer experience and satisfaction also contribute to a company’s state-wide reputation, as you can see here:

For Louisiana residents, Geico once again stands out from the crowd.

Read more: Progressive Car Insurance Guide [Data + Expert Review]

Companies with the Most Complaints in Louisiana

On the flip side of customer satisfaction comes customer complaints. While we shouldn’t always take complaints at face value, they’re a useful asset to consider when choosing a company to work with:

As the table above depicts, GoAuto has the highest complaint index of the providers in Louisiana, even though State Farm attracts a higher number. The complaint index differs because GoAuto is a smaller provider, whereas State Farm operates internationally.

Cheapest Companies in Louisiana

It’s difficult to call any of the rates in Louisiana cheap. Even so, there are some companies that fall far below the state’s average premium cost:

Once again, USAA stands out among the crowd by offering a rate over $1,000 below the state’s national average.

Commute Rates by Company

The distance of your morning commute is going to impact your car insurance rate, as you can see below:

Six major factors affect auto insurance rates in LA. Which car insurance factors will affect your rates the most? Find out below:

Coverage Level Rates by Company

Your chosen level of coverage is going to impact the amount you’re expected to pay:

Credit History Rates by Company

Your credit history reflects your ability to pay back money you owe to different organizations. Naturally, car insurance providers are going to take your credit history into account when offering you a rate.

Driving Record Rates by Company

Your driving history reflects both your knowledge of the rules of the road and your ability to work within them.

As you might guess, high-risk drivers are charged more for their coverage than low-risk drivers.

Number of Insurers in Louisiana

There is also a difference between local providers and national providers.

Local providers, or domestic providers, operate solely within Louisiana. Comparatively, foreign insurers operate all throughout the United States. Take a look at Louisiana’s breakdown below:

Louisiana Driving Laws

The reality is that legislation in Louisiana directly impacts the kind of rates that car insurance providers are able to make available to you.

Consider this: Louisiana is a “direct action” state. That mean that an injured passenger, if they choose to forgo the aid of the driver determined to be at-fault, is able to sue the appropriate insurance provider for lack of coverage.

On one hand, this means that a body with significantly more funds — aka, the insurance provider — is sometimes forced to cover the cost of an accident. On the other hand, though, this means that Louisiana providers will charge more for their premiums to make a profit.

The law allowing for this redirection has been in place since 1918, making it exceptionally difficult for modern Louisiana legislators to overcome the financial and cultural barrier it represents. You can read more about this law here.

Louisiana providers have made alternative moves to make insurance more affordable. Drivers have the option to work with “economic-only” coverage, or uninsured/underinsured motorists coverage. This coverage became available in 1997 under the unofficially named “No Pay, No Play,” act.

Do note that No Pay, No Play coverage will only cover the applicable drivers for hard dollar damages — property damage, wages lost due to the accident, and medical bills. Anything outstanding will be left to the injured party.

Car Insurance Laws

With those complicating factors out of the way, let’s look at the types of coverage or insurance that Louisiana legislation also works to make available to the state’s drivers.

Windshield Coverage

Legislation in Louisiana does not require the state’s car insurance providers to offer you windshield repair or replacement. If you want to include this coverage in your plan, you’ll need to discuss the option with your provider of choice.

It is worth noting, though, that Louisiana law does allow insurance providers to utilize aftermarket crash parts when estimating the cost of replacement, but that the applicable deductibles cannot exceed $250.

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High-Risk Insurance

If you happen to have a DUI or a significant number of points on your license, you’re in luck. Louisiana offers its Louisiana Automobile Insurance Plan to high-risk drivers. This plan operates through a company called AIPSO, and while they will not take responsibility for your behavior, they will ensure that you have the state minimum liability coverage, regardless of your driving history.

Low-Cost Insurance

Louisiana does not offer car insurance programs for low income families that would ease the pressure of paying for car insurance. However, drivers can seek out discounts to make the cost of insurance more bearable.

Be sure to ask your provider of choice if you or your family are eligible forany of the following discounts:

• Accident-Free Discount
• Affiliation Discount (this would be any discounts through your employer, school, team, etc.)
• Anti-Theft Discounts (i.e. if you have alarms, tracking systems, etc on your vehicle)
• Auto-Pay Discounts (if you were to set up automatic payments from checking – some providers refer to it as a Paper-Saving Discount)
• Good Student Discount
• Homeowner’s Discount
• Multi-car Discount
• Green/Hybrid Car Discount (if you own/lease a hybrid or electric vehicle)

Be sure you shop around in order to find the best coverage for you that is equally cost-effective.

Automobile Fraud in Louisiana

It’s difficult to commit insurance fraud by accident.

That said, the insurance industry sees 10 percent of its operating costs go to enduring fraudulent claims or accounts over the course of a year.

There are two different types of automobile fraud.

• Hard fraud sees a driver deliberately falsifying a claim or faking an accident in order to receive compensation
• Soft fraud sees a driver padding a claim or misrepresenting accident information to an insurance provider

Soft fraud is the more common of these two types of fraud.

Even though you may think you’re just telling a white lie, soft fraud is considered a misdemeanor, and lying on your claim is considered a class 5 felony.

Statute of Limitations

A statute of limitations dictates the amount of time you have to submit a claim to your provider of choice after an accident.

Louisiana law states that property damage and personal injury claims need to be submitted within a year of the applicable accident taking place.

Vehicle Licensing Laws

With claim legislation under your belt, let’s take a look at licensing laws.

Real ID

You’d figure that your driver’s license would qualify as a REAL ID without any modifications, right? Not anymore.

Real ID is a phenomena arriving in 2020. All Louisiana drivers — and drivers throughout the United States — will need to have REAL ID to get on a plane, be the flight domestic or international.

Penalties for Driving Without Insurance

While it may seem like driving would be less expensive without car insurance in Louisiana, it’s not. The aforementioned “No Pay, No Play” act dictates that uninsured drivers come away from their accidents already in debt:

Anyone caught driving without insurance in Louisiana will already owe $25,000 in property damages and $15,000 in personal damages to the person they happen to get into an accident with.

This is by far the most severe approach a state can take to dissuade uninsured driving. It also means that, even with Louisiana’s outrageous rates, it’ll be less expensive for you to purchase a plan than to go without one.

Teen Driver Laws

Teen drivers, upon turning 15, will have to progress through two different types of provisional licenses to driver safely on Louisiana’s roadways. Take a look at the age, passenger, and time restrictions listed in the table below.

License Renewal Procedures

Older drivers are expected to undergo the same license renewal procedures as the other, non-teenage drivers in Louisiana. You can take a look at the required processes in the table below:

The only exceptions Louisiana makes is for those drivers 70 years and older who also have a medically diagnosed disability.

If the aforementioned person is unable to renew their license in person, they must have a sworn, physician-certified affidavit submit a statement noting that the driver in question possesses all of the faculties and cognitive functions that would allow them to operate safely on the road.

New Residents

If you’ve recently moved to Louisiana, make sure you complete the following tasks within 20 days of your residency:

• Obtain a Louisiana driver’s license
• Purchase an auto insurance policy
• Register your car with the local OMV

Rules of the Road

That takes car of legislation — but what do the rules of the road in Louisiana consist of?

Fault vs. No-Fault

As was previously mentioned, Louisiana is an at-fault state. The driver who is determined to be responsible for the accident in question will be responsible for all charges applying to that accident. Again, though, the complexities of “No Pay, No Play,” challenge the straightforward nature of that process.

Seat Belt and Car Seat Laws

Louisiana’s car seat and seat belt laws primarily apply to children who are 5 years old or younger. If a child is within that age group and/or weighs less than 60 pounds, they need to be confined to an appropriate car seat, or else the driver in question will face a $100 fine.

After a child turns 6 or weighs more than 60 pounds, she is free to sit wherever in a vehicle she likes, save for the cargo area. No one is allowed to ride in the cargo area of a pickup truck unless:

• The passenger is older than 12 years old and not on a major highway
• The passenger is in a parade and moving at a pace slower than 15 mph
• There is a state-wide or local emergency declared

Keep Right and Move Over Laws

If you are driving more slowly than the posted speed limit, or if you are not looking to pass a car in front of you, then Louisiana law dictates that you must remain in the right-hand lane of the applicable interstate.

You must also move over for vehicles that have their lights flashing, regardless of whether or not they’re clearly marked as emergency vehicles. These vehicles include but are not limited to:

• Police cruisers
• Ambulances
• Firetrucks
• Tow trucks
• Recovery vehicles

Speed Limits

Across Louisiana, you’ll be able to spot the following maximum speed limits:

• Rural areas — 75
• Urban Areas — 70
• Limited Access Roads — 70
• All Other Roads — 65

Ridesharing

The rise of Uber and Lyft have made it easier than ever for people to get to the places they need to go. These companies have also created a new industry for drivers across the United States. If you currently work with either company or one of their competitors, or if you’ve thought about using your vehicle for a job before, you’ll need to get ridesharing insurance.

Safety Laws

Let’s dive into the legislation that applies to more serious concerns that seat belts and speed limits. If you drive while impaired in Louisiana, you’ll likely face serious legal consequences.

DUI Laws

Louisiana’s position on drinking and driving is reasonably lenient, especially when compared to the legislation in place in other states. Take a look at the table below to see how the consequences of a DUI vary based on a driver’s history:

Distracted Driving Laws

If you’re caught driving with a phone in hand in Louisiana, you’ll face immediate consequences. The distracted driving laws in Louisiana receive primary enforcement, which means that law enforcement needs no other reason to stop you if they spot you on your phone.

That legislation reads as follows:

• Handheld bans apply to all drivers in signed school zones
• Learner’s permit holders and intermediate license holders are not allowed to utilize cellphones while driving
• Any driver under 18 cannot use a cellphone while driving, even if the phone operates through a car’s speakers or Bluetooth
• Cellphones cannot be used in the car of first-year drivers, regardless of the driver’s age

After a driver turns 18 and has been driving her car for a year or more, then cellphone use becomes a secondarily enforced matter. This means that law enforcement will need a primary reason to pull a car over before giving out a handheld ban citation.

Driving in Louisiana

So, now you have a better idea of what safety legislation looks like in Louisiana. That said, how safe are Louisiana’s roadways?

Vehicle Theft in Louisiana

There are certain types of vehicles that are more likely to be stolen in Louisiana than others, as you can see in the table below:

It’s pickup trucks, not sports cars, that attract the eye of a thief. That means that local drivers will want to keep an eye on their cars while making their way from Point A to Point B.

Vehicle Theft by City

Your location can also impact the likelihood of vehicular theft. As you can see below, there are some cities in Louisiana that see far more thefts than others:

Road Fatalities in Louisiana

Road fatalities occur for a number of different reasons. Louisiana saw a 11.19 fatality rate per 100,000 people in 2017, and which driving growing ever more complicated, that number seems set to rise.

Let’s break the reasoning for that rate down.

Most Fatal Highway in Louisiana

Louisiana’s U.S. 90 sees the most fatalities in the state on a yearly basis, according to the National Highway Traffic Safety Administration. It’s normal for this highway to produce 27 fatal — fatal — accidents over the course of a year, due primarily to the highway’s popularity.

Fatal Crashes by Weather Condition and Light Condition

Different weather and light conditions can impact the way that drivers are able to operate on the road. Take a look at how both factors cause fatalities across Louisiana:

Traffic Fatalities

Location also impacts the likelihood of a car accident, as you can see in the table below:

Fatalities by Person Type

Person type is also likely to impact fatality statistics. “Person type” here refers to a person’s relationship to a vehicle as opposed to any other demographic statistics.

As you can see, passengers are the people most frequently involved in fatalities. Motorists are also high up on the list of potential fatality victims.

Fatalities by Crash Type

There are also specific crash types that most frequently result in fatalities:

Five-Year Trend for the Top 10 Counties

The table below relays the top 10 counties in Louisiana that happen to see the most accidents over the course of a year.

Note that there’s no commonality between these individual counties’ traffic trends. The number of fatalities in East Baton Rouge Parish, for example, are on the rise. Comparatively, Ascension Parish has seen a fluctuation. This simply means that no matter where you are in the state, you need to drive cautiously.

Fatalities Involving Speeding by County

It’s tempting to play Speed Racer while you’re on the road. However, Louisiana sees its fair share of speeding-related fatalities over the course of a year, as you can see below:

The maximum speed limit on Louisiana’s rural roads is 75 mph. If that isn’t enough to satisfy you, then you may want to take up a hobby that’ll lead you to the Indy 500.

Fatalities in Crashes Involving an Alcohol-Impaired Driver

We’ve already mentioned that drinking and driving is a terrible combination. Louisiana may be lenient with its drinking and driving laws, but that doesn’t mean the number of accidents involving an inebriated driver are any lower:

Teen Drinking and Driving

The aforementioned numbers don’t include teens who happen to be convicted of drinking and driving. Louisiana arrests more intoxicated teen drivers on average than the nation as a whole:

Teach your teens early on that they don’t need to have alcohol to have fun — and especially not while on the road.

EMS Response Time

When you know how long, on average, it takes EMS to arrive at the scene of an accident, you can address the situation a little more calmly.

As you can see, urban drivers have a slight advantage over rural drivers in terms of EMS response time. Drivers involved in accidents in urban areas will likely reach a hospital under an hour after they’ve been in an accident. Comparatively, rural drivers will reach hospitals one hour after they’ve been in a registered accident.

Transportation

With those numbers out of the way, let’s take a look at an average day of driving in Louisiana and the kind of traffic you may have to deal with.

Car Ownership

As is the case with most states, Louisiana homeowners frequently keep two cars in their garages.

However, the next highest statistic reveals that Louisiana car owners are more likely to own a single car than they are to own three.

Commute Time

The average daily commute in Louisiana takes 24.2 minutes. This means that, in at least one area, Louisiana ranks below the national average — though, admittedly, not by much.

The national average commute time comes in at 25.3 minutes, giving Louisiana drivers a minute of leeway.

Even so, 2.88 percent of Louisiana drivers have to endure a “super commute” — a commute that lasts longer than 90 minutes.

Commuter Transportation

The vast majority of drivers in Louisiana also prefer to drive alone to and from work. Nearly 10 percent of commuters carpool and about one-half that many walk or ride their bikes to work. (For more information, read our “Can you drive alone with a driver’s permit?“).

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Traffic Congestion in Louisiana

With so many folks driving on their own on a daily basis, you might expect Louisiana’s roadways to be especially crowded. According to the INRIX Scorecard, though, only one of Louisiana’s cities has any cause for concern: New Orleans. Even then, New Orleans ranks at number 137 on the list, with 74 hours of drivers’ time being lost to congestion.

And with that, we come to the end of our guide to Louisiana’s car insurance. If you’re interested in learning more about the car insurance rates available in your area, use your zip code to access our FREE online tool.

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