Why is Louisiana Auto Insurance So Expensive?

The reason auto insurance is expensive in Louisiana might be due to lots of highways, a big population, higher rates of car theft, and a lot of lawsuits related to car accidents.

Typically, the yearly cost of car insurance in Louisiana is $3,041, which is more than double the national average of $1,424.

Louisiana auto insurance costs more than the national average for a few reasons. Some of these are; car theft rates and population density.

Additionally, a driver’s personal details also matter, for instance, age and driving history.

In this guide, Auto Policy Central explains why Louisiana insurance can be expensive and shares tips to save money on your premiums.

Read on to understand the factors influencing the higher rates and how to seek affordable options.

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The state of Louisiana
Source: Solo Insurance

Why is Louisiana Auto Insurance Expensive?

Louisiana ranks third in the nation for expensive auto insurance, averaging $3,041 per year.

Furthermore, Auto insurance costs have been rising over time, regardless of location.

Certain factors specific to the state contribute to the high cost of car insurance.

Louisiana’s dense urban population and a high number of auto-related legal disputes are key reasons for the expensive rates.

High Density of Highways – Louisiana boasts a highway density of 8.80, making it more susceptible to car accidents. This increased risk leads to more insurance claims and subsequently higher premiums.

Dense Urban Population – Approximately 73% of Louisiana’s population resides in urban areas, which contributes to higher insurance rates. Urban areas tend to have more accidents, vandalism, and theft, resulting in more insurance claims.

Above-Average Vehicle Theft Rate – Louisiana experiences a higher-than-average rate of car theft compared to other states, with around 231 thefts per 100,000 people. These thefts drive up the overall cost of auto insurance premiums.

High Volume of Auto-Related Lawsuits – Louisiana has a higher tendency for auto-related lawsuits compared to other states. Cases under $50,000 are decided by judges, while juries determine cases exceeding that amount.

Other Factors Influencing High Insurance Rates in Louisiana

Besides the rates being high in Louisiana, other individual elements can affect them too.

Some of these factors are; locality, vehicle type and model, credit history, driving history, choice of insurer, and age all impact how much you pay for coverage.

The Location Impact

Where you live influences your auto insurance expenses. While Louisiana already ranks among the states with the highest insurance rates, your city of residence can further affect costs.

In Louisiana, Shreveport offers the most affordable auto insurance, averaging $1,791 annually.

Conversely, New Orleans stands as the priciest city for car insurance, with rates averaging $3,380 per year.

Age Factor

Typically, individuals below 25 are seen as higher-risk drivers. In Louisiana, 16-year-old drivers pay nearly three times more than a 40-year-old for car insurance because of their lack of experience.

Clearly, your age plays a role in determining how expensive your auto insurance premiums will be.

Driving History

Having a spotless driving record will considerably reduce the cost of your car insurance compared to having traffic violations or a DUI.

Insurance providers view individuals with a poor driving history as high-risk drivers, increasing the likelihood of them making a claim.

Insurance Provider Selection

Your choice of an auto insurance company is crucial as it can contribute to the rates you pay.

It’s therefore important to compare rates across several insurance companies before settling on where to buy your premium.

Vehicle Type and Model

The type and model of your vehicle play a role in determining your car insurance premiums.

Typically, insurance for newer vehicles costs more compared to older models.

Additionally, sports cars generally incur expensive auto insurance premiums compared to sedans or minivans.

You can approximate your insurance premiums based on your car’s make and model using insurance comparison tools available online.

How to Pay Less on Auto Insurance in Louisiana

Even though car insurance in Louisiana can be costly, here are some tips to help you save money.

First, figure out how much insurance you really need. Then, try to find discounts, raise your deductibles, bundle your insurance policies, and compare quotes from different companies.

  • Find the Right Policy: Make sure you get a policy that fits your needs.
  • Bundle Up Your Insurance Policies: Combine your home and auto insurance for potential savings.
  • Hunt for Discounts: Look into discounts based on your age, driving habits, and more.
  • Increase Your Deductible: Consider raising your deductible to lower your premiums, but be prepared to pay more if you need to make a claim.
  • Pay-Per-Mile Option: If you don’t drive much, pay-per-mile insurance might be a good choice.
  • Assess Your Coverage Needs: Think about whether you need all the coverage options available, especially if your car isn’t worth much.
  • Use Online Insurance Comparison Tools to compare rates and find the best deal for you.

Frequently Asked Questions on Auto Insurance in Louisiana

Below are some commonly asked questions on why auto insurance is expensive in Louisiana.

  • Why is car insurance expensive in Louisiana?

Louisiana is one of the top three states where auto insurance is the most expensive. It’s because there are lots of highways, many people live in cities, car theft happens more often, and there are many legal cases of car accidents.

  • What factors influence Louisiana auto insurance rates?

There could be many reasons why your insurance costs more, like how old you are, your driving history, which insurance company you choose, where you live, your credit score, and the type of car you drive.

  • What’s the minimum insurance required in Louisiana?

Louisiana law states that you need at least 15/30/25 liability coverage for car insurance.

  • What’s the average cost of insurance in Louisiana?

The yearly average for auto insurance in Louisiana is $3,041, which is more than double the national average of $1,424.

  • Where can I find the cheapest insurance in Louisiana?

According to several sources, Southern Farm Bureau offers the cheapest car insurance in Louisiana, at $772 per year.

  • Which insurance company is best in Louisiana?

For a mix of good service and reasonable prices, State Farm is a top choice for auto insurance in Louisiana.

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