Louisiana drivers, on average, pay more for car insurance than drivers in any other U.S. state. The average cost of full coverage car insurance in Louisiana is $2,724 per year, according to Bankrate’s 2021 study of annual quoted premiums.
The high premium could be due to the stress that auto insurance crashes put on Louisiana’s economy. In 2019, over 740,000 injuries occurred as a result of motor vehicle crashes in the state, causing over $8.8 billion in damages. Having the best car insurance in Louisiana for your situation can help protect you against the devastating financial fallout of causing an accident.
Best car insurance companies in Louisiana
When it comes to car insurance, Louisiana drivers should consider more than just price to find the best policy for their needs. Bankrate’s insurance editorial team reviewed the largest Louisiana car insurance companies by market share. We first analyzed average quoted premiums obtained from Quadrant Information Services, and then extensively reviewed each company’s coverages, discounts, policy features and third-party rankings.
We assigned a Bankrate Score to each company. On a scale of 0.0 to 5.0, the Scores reflectly how highly each company ranked in each scoring category. The higher the Score, the more highly the company ranked.
If you are shopping for the best auto insurance in Louisiana, these companies might be a good starting place:
|Car insurance company||Bankrate Score||Average annual full coverage premium||J.D. Power customer satisfaction score|
|USAA*||4.8||$2,035||890 / 1,000|
|Geico||4.6||$2,211||871 / 1,000|
|State Farm||4.4||$3,119||881 / 1,000|
|Progressive||4.1||$3,099||856 / 1,000|
|Allstate||3.6||$3,341||876 / 1,000|
*USAA does not qualify for official ranking with J.D. Power due to eligibility restrictions.
USAA may be a great choice for Louisiana drivers who value excellent customer service. The company received the highest score on our list for claims satisfaction but does not qualify for official ranking due to the fact that it sells coverage exclusively to current and retired military members and eligible family members. If you are eligible for USAA, you have access to the lowest average full coverage rates in Louisiana.
Learn more: USAA Insurance review
If your car insurance budget is tight but you do not qualify for USAA, Geico might be a good choice. The company’s low average premium may be due in part to its generous discounts, which include savings for military members, federal employees, good students and safe drivers. Geico also received the highest ranking in the 2021 J.D. Power U.S. Insurance Digital Experience Study for the service category. If you like to handle your insurance on a mobile app or website, Geico’s highly-rated platforms may be appealing.
Learn more: Geico Insurance review
Although State Farm’s average premium is higher than Louisiana’s average, the company may be appealing to you if you are looking for a well-established company. In fact, State Farm is the largest insurer or personal autos in Louisiana, with almost 30% of the market share. There are several ways to save on your State Farm premium in Louisiana, including bunding your policies, enrolling in the Drive Safe & Save program or the Steer Clear program (depending on your age), having a vehicle with certain safety features or being accident free.
Learn more: State Farm Insurance review
Progressive’s average premium is higher than Louisiana’s, but this might be because of the extensive optional coverages that the company offers. You might be able to tailor your policy to your needs by adding options like ridesharing coverage, loan/lease gap coverage, custom parts and equipment coverage and a deductible savings bank. And you might be able to lower your premium by getting a quote and buying a policy online, having continuous insurance or participating in the Snapshot program.
Learn more: Progressive Insurance review
Allstate’s premium is the highest on our list, but keep in mind that price is not the only factor to consider when shopping for car insurance. Allstate offers several optional coverages to customize your policy, like sound system coverage and ridesharing coverage. The company also has several discounts, like savings for new cars, smart students and safety devices. You might also save money just by paying your bill in full or by signing up for automatic payments.
Learn more: Allstate Insurance review
Average cost of car insurance in Louisiana
Bankrate’s analysis of the average cost of car insurance places Louisiana in the top three most expensive states. Louisiana drivers pay $2,724 per year on average for full coverage, which is over $1,000 more than the national average of $1,674 per year.
|Average annual premium for minimum coverage in Louisiana||Average annual premium for full coverage in Louisiana|
The high cost of coverage in Louisiana could be due to the economic strain that auto accidents put on Louisiana’s economy. Other possible reasons for the high cost could be the cost of parts and labor for damages, the cost of healthcare for injuries and the likelihood of getting into an accident.
State minimum insurance requirements in Louisiana
Louisiana, like most states, requires its drivers to carry at least certain minimum car insurance coverages and limits. Louisiana’s minimum insurance requirements include bodily injury liability and property damage insurance. The minimum liability insurance is Louisiana is:
- $15,000 bodily injury per person
- $30,000 bodily injury per accident
- $25,000 property damage for others
Insurance experts generally recommend purchasing more than the state minimum amount of coverage to protect yourself financially. Minimum liability coverage only pays for other people’s injuries and property – it does not cover your injuries or car damages. If you cause an accident and the damages exceed your insurance amount, you are responsible for the overage out of pocket.
If you need coverage for damage to your own vehicle, you will need full coverage, which adds comprehensive and collision. If you have a loan or lease on your vehicle, your lender will likely require you to carry full coverage.
How to get the best car insurance in Louisiana
The best car insurance in Louisiana is going to depend heavily on your own personal wants, needs and circumstances. To find the best auto insurance in Louisiana, you may want to:
- Evaluate your individual needs: Everyone’s situation is unique. Do you have a teen driver that you need to insure? Do you have tickets, accidents or DUI convictions on your record? Is your budget particularly tight? Understanding what your rating factors look like might help you find a company that fits your circumstances. Companies that offer car insurance discounts that you can take advantage of might help you get a lower premium.
- Consider state factors: Besides Louisiana’s minimum car insurance limits, other state- and location-specific factors can impact what coverages and limits you might want to purchase. For example, if you live in an area with lots of pedestrians, bikes or other motorists, you might want to purchase higher liability coverages to better protect your finances if you hit someone.
Talking to an insurance agent who is licensed in Louisiana may be helpful when you are choosing coverages. A Louisiana insurance agent may be familiar with the needs of drivers in your area and can help you choose appropriate protections.
Car insurance discounts in Louisiana
Car insurance in Louisiana is expensive, but there are ways to save. Some of the best discounts on your Louisiana car insurance include:
- Active military: If you are active military based in Louisiana, you may be eligible for discounted car insurance.
- Multi-policy: Most insurance companies offer a discount for bundling policies. This discount is usually for bundling your auto insurance with your home, condo or renters insurance, but some companies might give you a discount for buying other types of insurance as well, like life, business or pet insurance.
- Safe driver: If you have not filed any claims or had any tickets or DUI convictions on your record in a certain number of years, you might get a discount.
- Telematics discounts: Many companies offer telematics programs, which track your driving habits using a plug-in device or mobile app. Based on the data received, you could earn a personalized discount.
Every company offers its own suite of discounts. You can often review discounts online, but talking to a company representative is often the best way to identify savings opportunities that you qualify for.
Frequently asked questions
What do I need to get car insurance in Louisiana?
To get car insurance in Louisiana, you will need the name, date of birth and driver’s license number for every driver in your household and anyone who regularly drives your vehicles. You will also need the vehicle identification number (VIN) of each vehicle you want to insure. When getting quotes, it can be helpful to have an idea of the coverages and limits you want to buy, but an agent can help you choose appropriate protections for you.
Do I need more than the minimum coverage?
Minimum coverage is all that is legally required to drive in Louisiana. If you own your car outright, you have the option to purchase just minimum coverage. If your car is financed, you will likely need to purchase full coverage. Most insurance professionals recommend that you purchase higher liability limits regardless of your vehicle ownership status. Higher liability coverage offers more financial protection, which better safeguards your financial health.
Does liability insurance include my vehicle?
If you are in an accident in Louisiana and your car is damaged, the state’s minimum requirement of liability insurance will not cover any damages to your vehicle. Even if you purchase higher liability limits, damage to your car is not covered unless you purchase comprehensive and collision coverages.
What happens if my car is damaged from flooding?
Louisiana suffers its fair share of hurricanes and flooding. If you only purchase liability coverage, your car will not be insured against floods. You would need to add comprehensive car insurance coverage to protect your vehicle from weather events.
What happens if I do not insure my car in Louisiana?
If you own a car in Louisiana, you are legally required to carry at least the minimum levels of car insurance coverage. You will not be able to register your vehicle without proof of insurance. The penalties for driving without insurance can be severe and could include fines and license suspension. If you cause an accident without insurance, you will be responsible for paying for the damages out of pocket. This can lead to severe financial stress, and if you are unable to pay you might face a lawsuit. Car insurance in Louisiana can be pricey, but the price of driving uninsured is far worse.
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.
Bankrate Scores primarily reflect a weighted rank of industry standard ratings for financial strength (AM Best, S&P, Moody’s) and customer experience (J.D. Power, NAIC), in addition to average quoted rates from Quadrant Information Services. The J.D. Power studies utilized include the 2020 Auto Insurance Study and the 2020 Auto Claims Study. Our Bankrate editorial team’s extensive research and analysis provided a secondary assessment of each insurer’s online and mobile resources and policy management options, which also contributed to overall ratings.