Being Louisiana’s biggest city and a famous tourist destination make New Orleans a crowded place. The Big Easy contributes to the three million vehicles in the state, and the rough road conditions and spells of severe weather increase the risk of traffic fatalities. In 2019, there were 4,936 car accidents in New Orleans that involved one or more injuries, and 42 fatal accidents. There has also been a reported rise in vehicle theft in the city of late.
Car insurance is not only legally mandated in New Orleans but also a vital requirement. But it is not cheap to insure a vehicle. The average driver pays $4,216 per year for full coverage insurance and $1,211 for minimum coverage insurance in New Orleans. However, we identified several insurance companies that have below-average rates, as well as good coverage options, multiple discounts and high ratings from third-party organizations.
Best car insurance companies in New Orleans
The best car insurance companies in New Orleans are USAA, Southern Farm Bureau, Progressive and Geico. These providers stand out for their affordable premiums, policy offerings, discounts, overall customer satisfaction scores and financial strength.
|Insurance company||J.D. Power customer satisfaction score||Average annual premium for minimum coverage||Average annual premium for full coverage|
|Geico||857 / 1,000||$599||$3,100|
|Progressive||848 / 1,000||$1,152||$4,677|
|Southern Farm Bureau||Not rated||$705||$2,770|
|USAA||821 / 1,000||$801||$2,836|
Geico’s average car insurance premiums are well below the average rate in New Orleans. The coverage is somewhat limited, but the company offers significant savings. There are discounts for military personnel, federal employees, going on emergency deployment, employee/membership groups, insuring multiple vehicles, taking a defensive driving course and getting good grades in school.
New Orleans drivers who are looking for comprehensive coverage should consider Progressive. Drivers can customize their policy with add-ons, like roadside assistance, gap insurance, custom parts and equipment coverage and more. Progressive also offers a variety of generous discounts, including the Snapshot safe driver program, plus a disappearing deductible program that lowers a driver’s deductible by $50 for each claims-free year.
Southern Farm Bureau
Southern Farm Bureau offers the cheapest car insurance in New Orleans. The average full coverage policy costs $2,770 per year and the average minimum coverage policy costs $705 per year. With Southern Farm Bureau, New Orleans drivers can take advantage of highly-rated customer service, plus good coverage options and discounts. There is also a mobile app where drivers can request roadside assistance and file a claim.
USAA is one of the highest-rated insurance companies in the country. However, coverage is only available to active duty military members, veterans and their spouses. Drivers who qualify for coverage can get access to excellent customer service, generous discounts, including military-specific savings, and efficient claims handling. USAA also offers endorsements, like accident forgiveness and car replacement assistance, for more protection.
Cheapest car insurance in New Orleans
The average cost of car insurance in New Orleans is significantly more expensive than the average rate in Louisiana. The average Louisiana driver pays $2,711 for full coverage insurance and $757 for minimum coverage insurance. For comparison, drivers in New Orleans pay over $1,500 more for a full coverage policy and over $450 for a minimum coverage policy.
New Orleans drivers can get a cheaper rate by choosing an insurance company that offers below-average premiums. The table below includes the cheapest car insurance rates from the most popular carriers based on market share:
|Insurance company||Average annual premium for minimum coverage||Average annual premium for full coverage|
Many drivers focus on price when shopping for car insurance. But it is also important to look at other factors, like coverage options and customer service ratings. USAA, Progressive and AAA offer the best endorsements, whereas State Farm and Geico offer fewer coverage options.
USAA is widely considered to have the best customer service, but coverage is only available to military members and veterans. AAA also has good customer service, but the policies are priced above average, which could be a deterrent for some drivers. All five providers offer generous discounts that can help drivers get a cheaper rate.
In terms of J.D. Power customer satisfaction ratings, these providers are all over the map. Geico and USAA have above-average ratings, State Farm and Progressive have below-average ratings and AAA is not rated. However, all five providers have good financial strength ratings from AM Best.
New Orleans insurance requirements
Every driver in New Orleans who has a vehicle registered in Louisiana is required to carry car insurance. The minimum required insurance is 15/30/25 in personal liability insurance, which includes the following coverage:
- $15,000 in bodily injury liability coverage per person
- $30,000 in bodily injury liability coverage per accident
- $25,000 in property damage liability coverage per accident
Drivers who opt for minimum coverage insurance will pay the lowest rate. However, there is no guarantee that liability-only insurance will cover the full cost of an accident. If a driver causes an accident and their financial liability exceeds their policy’s limit, they are required to pay the difference out-of-pocket, which could cost thousands of dollars, or more.
In some cases, drivers in New Orleans are required to carry full coverage insurance. This is common for drivers who have a leased or financed vehicle. Many loan providers require drivers to carry full coverage insurance until their loan is fully paid off, to reduce the lender’s risk.
Car insurance discounts in New Orleans
Most car insurance companies in New Orleans offer discounts that can help drivers get a lower rate. Here are some of the most popular discounts:
- Claims-free: Drivers who have no insurance claims, accidents or traffic violations on their record within the last several years can usually get a cheaper premium.
- Good student: Many insurance companies will give good students a lower rate if they maintain a certain GPA in school.
- Pay in full: Drivers who can afford to pay their annual premium upfront and in full, rather than in monthly installments, can often save money on their policy.
- Defensive driving course: Drivers who complete an approved defensive driving or driver training course may be able to get a discount on their premium.
Frequently asked questions
What is the best car insurance company?
The best car insurance company is different for every driver. It depends on the driver’s location, their budget, how much coverage they need and the type of coverage they want. Drivers should shop around and compare rates to find the best insurance company that meets their unique needs.
How much does car insurance in New Orleans cost?
In New Orleans, the average driver pays $4,216 per year for full coverage insurance and $1,211 for minimum coverage insurance. However, every driver pays a slightly different rate based on factors like their ZIP code, age, credit score and claims history.
How much car insurance do I need in New Orleans?
Drivers in New Orleans are required to carry at least 15/30/25 in personal liability insurance, but many drivers choose to purchase full coverage insurance for more protection.
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 sample drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.