Auto insurance for high-risk drivers in Louisiana

1
Petri Oeschger/Getty Images
Bankrate Logo

Why you can trust Bankrate

While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for . This content is powered by HomeInsurance.com (NPN: 8781838). For more information, please see our

Car insurance costs the average American driver $1,674 per year. However, drivers can pay more or less depending on geographic location and personal characteristics like credit score, driving history, age and more. In Louisiana, the rates may also be significantly higher depending on several other factors. Car insurance companies in Louisiana determine premiums and whether to insure a driver depending on the level of risk posed for them.

A high-risk individual, from the perspective of insurers, is someone who is more likely to file an insurance claim. Because of this, rates are generally higher for high-risk drivers due to risky driving behavior. In 2017, for example, the state issued 11,045 speeding tickets, which could lead to increased rates for speeding drivers.

Based on Bankrate’s base profile, rates for high-risk drivers include those who have received a speeding ticket, been involved in an accident, received a DUI or had a lapse in coverage. Teen drivers are also typically classified as high-risk in Louisiana.

Rates for high-risk car insurance in Louisiana

Car insurance rates will vary depending on each car insurance provider, with some offering more budget-friendly premiums than others. Each car insurance provider has a unique application and underwriting process. Additionally, the rates for high-risk drivers will vary depending on driver-specific factors.

For example, car insurance companies will usually consider drivers’ ages, driving history and record, marital status, gender and other characteristics. High-risk drivers are also evaluated on whether they have been involved in an accident, a DUI, speeding ticket or other high-risk auto incidents.

If a driver is caught speeding and issued a citation, the Louisiana DMV will be notified. Points from the speeding ticket can then be added to a driver’s license, in which case an insurance company may identify them as a high-risk driver. The average percent increase for full coverage car insurance after a speeding ticket varies from a minimum of 8% to 41% nationally, depending on the car insurance provider.

Speeding is against Louisiana’s driving laws, but speeding penalties differ upon the extent of the speed a driver is caught going over. Speeding in excess of maximum speed limits is prohibited in Louisiana, which exists as 75 miles per hour on a highway or an interstate and 65 miles per hour on a multi-lane divided highway with partial or no control of access. Along with higher insurance premiums, there are several other penalties for speeding in the state of Louisiana. The consequences for speeding include fines ranging from $100 to $300. Speeding could also result in other charges like reckless driving.

Car insurance company National average annual premium for full coverage before a speeding ticket National average annual premium for full coverage after a speeding ticket % increase
State Farm $1,457 $1,590 9%
USAA $1,225 $1,463 19%
AAA $1,938 $2,817 41%
Geico $1,405 $1,734 23%
Progressive $1,509 $1,826 21%
Allstate $1,921 $2,519 31%
Southern Farm Bureau $1,548 $1,672 8%

Rates after an accident

Accidents are another indicator of risk for car insurance companies. After being involved in an accident in Louisiana, insurance premiums will likely go up as the mark on a driving record could result in the high-risk label. Based on national average rates, drivers in Louisiana may see a percent increase from anywhere between a minimum of 14% to a maximum of 48% in full coverage premiums after an accident. The costs for car insurance after an accident and the percentage increase varies by car insurance companies in Louisiana.

Louisiana has specific laws on car accidents so depending on a driver’s car insurance coverage, they could face more severe penalties. It is illegal to operate a vehicle in Louisiana without meeting the state’s minimum insurance requirements. Therefore, driving without at least $15,000 in bodily injury per person up to $30,000 per accident, and $25,000 in property damage coverage, could lead to a driver covering all accident costs out of pocket or running the risk of being sued and possibly taken to jail for not following Louisiana’s car insurance laws.

Car insurance company National average annual premium for full coverage before an accident National average annual premium for full coverage after an accident % increase
State Farm $1,457 $1,657 14%
USAA $1,225 $1,742 42%
AAA $1,938 $2,819 41%
Geico $1,405 $1,971 40%
Progressive $1,509 $2,231 48%
Allstate $1,921 $2,752 43%
Southern Farm Bureau $1,548 $1,881 21%

Rates after a DUI

Driving under the influence (DUI), also known as operating under the influence (UWI) in Louisiana, is illegal in all states across the U.S. In Louisiana first and second DUI offenses are considered misdemeanors. The maximum legal blood alcohol content (BAC) in Louisiana is .08% for adult drivers and .02% for drivers under 21. If someone is convicted of driving with a blood alcohol content level of 0.15 of higher, their penalties could be even more enhanced. DUIs are serious traffic violations in Louisiana, so getting convicted of one can stay on your record for years, potentially impacting your ability to obtain, renew or find affordable car insurance. After a DUI, the average national percent increase in premiums begins at 25% and could go up to 118%.

Other penalties after a DUI in Louisiana include fines from $300 to $1,000 for a first-time offense, 10 days to six months in jail and license suspension for up to a year (or more if BAC is .20% and above). You may also be required to do community service hours or go through a substance abuse program.

For a second offense, a driver could face penalties such as a fine from $750 to $1,000, 30 days to six months in jail and a license suspension for up to two years. They may also have to provide 240 hours of community service. Lastly, a third offense could result in up to $2,000 in fines, one to five years in jail and three years of license suspension. Some Louisiana drivers may be required to carry an SR-22 or FR-44 after a DUI conviction.

Car insurance company National average annual premium for full coverage before a DUI National average annual premium for full coverage after a DUI % increase
State Farm $1,457 $2,201 51%
USAA $1,225 $2,177 78%
AAA $1,938 $5,131 156%
Geico $1,405 $3,064 118%
Progressive $1,509 $1,933 28%
Allstate $1,921 $3,763 96%
Southern Farm Bureau $1,548 $1,930 25%

Rate for teen drivers

Teen drivers are generally considered high-risk to insurance companies due to their lack of road experience. The average policy with a teen driver may cost from $824 up to $4,725 for full coverage annually.

Drivers who are anywhere between age 15 to 19 are considered teen drivers. Studies show that teens are more likely to be involved in a fatal crash, especially when driving at night. In Louisiana, teens must follow the state law that they may not drive between the hours of 11 p.m. and 5 a.m. unless accompanied by a parent or guardian. Additionally, all applicants for a license in Louisiana must go through a licensing program and begin with a learner’s permit.

Car insurance company Average annual premium for full coverage
State Farm $2,077
USAA $2,186
AAA $3,210
Geico $1,897
Progressive $1,955
Allstate $2,459
Safeway $4,725
Louisiana Farm Bureau $2,131
Southern Farm Bureau $824

*16 year old on their parent’s policy

Who is a high-risk driver?

From the insurance industry’s perspective, a high-risk driver could be anyone from the age of 15 to 19 who is considered a teen driver, has received a speeding ticket, been in an accident, or been convicted of a DUI. Additionally, the car insurance industry defines a high-risk driver as anyone who is more likely to file an insurance claim more than the average driver would.

Bankrate’s sample high-risk driver includes one who has had at least one or more incidents applied to their driving record, including an at-fault accident, speeding ticket, DUI and lapse in coverage. If you have a driving history of an accident, speeding ticket or DUI, there is a higher likelihood that you would file an insurance claim for one of these reasons in the future. Insurance companies look at past behavior to predict what it would be like to insure someone.

How to lower your rate if you are a high-risk driver

Even if you are a high-risk driver and must pay higher car insurance premiums, there are a number of ways to lower your rate that may be worth considering.

  • Pay a higher deductible on your car insurance premium (if you can afford the higher out-of-pocket costs).
  • Take a defensive driver’s course.
  • Maintain a good credit score.
  • Enroll in auto-pay for potential discounts.
  • Change car insurance companies.
  • Take advantage of car insurance discounts.
  • Bundle insurance policies.

Frequently asked questions

What are the cheapest insurance companies for high-risk drivers?

Each insurance company varies depending on its application and underwriting processes. The cheapest insurance company for you may not be the cheapest for another because of differing personal factors. However, there are quite a few top insurance companies with affordable rates in Louisiana.

Can you reduce your insurance rate even if you are a high-risk driver?

Yes, there are a number of ways to reduce your car insurance in Louisiana even if you are considered a high-risk driver. A few ways to lower your car insurance include taking advantage of discounts such as low mileage, safety features, or good student, enrolling in auto-pay and bundling your insurance coverages.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually. These are sample rates and should only be used for comparative purposes.

High-risk drivers
Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.

Written by
Grace Kim
Insurance Contributor
Grace Kim has two years of experience in writing for finance and insurance domains such as The Cheapest Car Insurance Companies in New Jersey at Bankrate and Reviews.com. She has written about auto, homeowners, renters and life insurance. She holds an M.Sc from New York University in Corporate Communications and has spent most of her professional experience writing about finance and tech topics.
Edited by
Insurance Editor