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Louisiana Car Insurance

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Louisiana is lovely, but car insurance in Louisiana can be ugly. New Orleans drivers pay rates that are among the highest in the country, and even the cheapest areas such as Baton Rouge pay dearly compared with their neighbors across the Arkansas border. We've got every ZIP code in Louisiana mapped out below, along with the range of state car insurance rates we got from sampling six major national insurance companies.

Cheap car insurance in Louisiana

Louisiana car insurance requirements

Louisiana has relatively low minimum requirements of $15,000 per person ($30,000 per auto accident) for bodily injury liability insurance, but that doesn't help keep the price of a car insurance policy down. In Louisiana, there's no such thing as cheap car insurance. Louisiana is known for overly generous claim settlements, which experts say cause the high car insurance premiums. The state insurance commissioner says that the New Orleans metro area is the worst culprit, with insurance settlements 40 percent higher than the statewide average.

Comprehensive insurance recommended for natural disasters

Natural disasters, such as hurricanes, tropical storms and tornadoes, also cause havoc and claims. A total loss is a more common occurrence in Louisiana than in other states. Collision coverage does not cover damage resulting from a natural event; if you want your car covered, you'll need comprehensive coverage.

Recommended car insurance coverage

The cheapest car insurance may not provide sufficient protection, so how much insurance should you buy? Bare-bones coverage may be a good choice if you have few assets or have an old car and don’t drive much. But if you have a home and investments, consider buying more insurance. If you don’t, you’re at risk for having your money and house taken to cover the cost of an accident. If you financed your car you will be required to get additional comprehensive and collision coverage.

Use our How Much Car Insurance Do You Need? tool to get a recommendation.

AGE
STATE
VEHICLE MODEL YEAR
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OWNED FINANCED LEASED

Liability

We recommend you buy more insurance than is required to legally drive a car in your state, especially if you have savings and assets. The more money you have, the more likely you are to be sued following a car accident should your insurance be insufficient to cover all the expenses. If your net worth is:

  • less than $50,000, choose at least 50/100/50
  • between $50,000 and $100,000, choose at least 100/300/100
  • more than $100,000, choose at least 250/500/100

If you're leasing or financing your car, you must get coverage of 100/300/100 or higher.

Collision and comprehensive

Collision coverage pays for damage to your car after an accident that you cause. Comprehensive insurance pays to replace stolen cars and for damages from vandalism, flooding, hail, fire and animal strikes. If your car is:

  • less than 10 years old, you should strongly consider buying collision and comprehensive.
  • more than 10 years old, only buy collision and comprehensive if your car is worth $3,000 or more, if you couldn’t afford to replace your car if it’s wrecked, or if you just want more protection on your policy.

For drivers in Louisiana, collision costs an average of $670 yearly, comprehensive is $251, according to CarInsurance.com rate data. If you buy comp and collision, check our guide to choosing a deductible amount.

Medical coverage (MedPay)

Medical payments coverage can help pay for the medical or funeral expenses of covered drivers and passengers after an accident, regardless of fault, up to $25,000. In most states, including Texas, it's an optional addition to your car insurance policy. MedPay does the following:

  • Covers you and your passengers’ medical expenses
  • Pays for expenses after health insurance limits are exceeded
  • Offers additional protection to insured drivers who are hit by a car while walking or biking

If you and your passengers:

  • Don’t have health insurance, or have a plan that doesn’t cover car accidents or has low limits, we recommend that you add medical coverage of at least $5,000 to your car insurance policy.
  • Do have health insurance, it’s still a good idea to have medical coverage if you want the best protection in your policy, as it can pay out after your health benefits are maxed out.

Gap insurance

If you don’t own your car outright and have an accident, gap insurance pays the difference between the cash value of your car and the current outstanding balance on your loan or lease.

  • If you’re financing your car, your car is less than one year old and you’ve put less than 20 percent down on it, you should buy gap insurance. If not, you don’t need gap insurance.
  • If you’re leasing your car, it’s a good idea to buy gap insurance if you aren’t already required to in your lease agreement.
  • If you own your car outright, you don’t need gap insurance.

Cheaper uninsured motorist option

Optional uninsured and underinsured motorist coverage are offered together, but any insurance company in Louisiana should offer drivers the option of uninsured motorist economic-only coverage. For a lower premium, this coverage will only cover the cost of medical bills from any personal injury caused by uninsured drivers. It doesn't include compensation for other items, such as pain and suffering.

No pay, no play law: Besides having your car's license plates removed, vehicle impounded, and being fined for driving without automobile insurance, Louisiana also limits your ability to sue if you were driving uninsured and in a car accident. The state's no pay no play law prohibits uninsured motorists from collecting for the first $15,000 in bodily injuries and first $25,000 in property damage, regardless of who was at fault in the accident.

Must be 18 to own a car: In Louisiana, minors cannot own a car, even if it is donated or gifted to them. An adult must sign the title documentation. Most insurance companies in Louisiana will also require an adult to sign insurance documents for a minor to obtain an auto insurance policy.

DWI penalties: A first offense of driving while intoxicated in Louisiana can initially cost you $4500 in court costs, fines, lawyer fees and insurance costs, and will stay on your driving record for 10 years. Your driver's license will be suspended for 90 days on first offense and 1 year on a second offense. If you get your license reinstated after a DWI, you may need an SR-22 form to prove financial responsibility.

Requirements for vehicles over 20,000 pounds

Vehicles that have a gross vehicle weight or gross combined weight in excess of 20,000 pounds, typically commercial motor vehicles, are required to have higher liability coverage limits, per Louisiana law. The weight of the vehicle and their required car insurance coverages are as follows:

Vehicles with a gross vehicle weight of 20,001 to 50,000 pounds must have insurance coverage of at least 25/50/25 or a single combined limit of no less than $75,000.

Vehicles with a gross vehicle weight over 50,001 pounds must have insurance coverage of at least 100/300/25 or a combined single limit of $300,000.

Electronic proof of insurance is accepted here: Drivers can use a traditional paper insurance card or electronic insurance data to provide proof of auto liability insurance.

*The table shows the average annual rate of nearly every ZIP code in Louisiana from up to six major insurance companies. Rates are for a male driver, age 40, with a clean record and good credit for a 2016 Honda Accord. Data was provided for CarInsurance.com by Quadrant Information Services.

Cheapest car insurance in Louisiana by company

Below you'll see average annual rates for Louisiana, ranked cheapest to most expensive, for three coverage levels:

  • State minimum liability requirements
  • Liability limits of $50,000 per person/$100,000 per accident and $50,000 property damage
  • Liability of $100,000 per person/$300,000 per accident and $100,000 property damage, with comprehensive and collision at $500 deductible

Low cost auto insurance for Louisiana drivers with recent accidents

Filing an accident claim means you are likely to pay more for your car insurance coverage. However, how much more you pay depends on several factors, and your car insurance company plays is one of those significant factors. Each company assesses risk differently, so that's why the increase after an accident will vary among insurers. Here is how major carriers compare after at-fault accidents for the average Louisiana driver with a full coverage policy:

Who has the cheapest Louisiana car insurance for drivers with speeding tickets?

If you get a speeding ticket, chances are you'll see an increase in what you pay for car insurance, upon your policy renewal. Typically, you'll pay more for three years. But even with a traffic ticket, comparison shopping can save you money. For instance, you'll see that the difference between the highest rate and the lowest in the table below is more than $1,675, on average, according to CarInsurance.com's rate analysis. That's how much you can save by comparing car insurance companies.

How much does it cost to add a teen to your policy in Louisiana?

No matter where you live, adding a new driver to your family policy will hike your rate significantly. In Louisiana, you can expect your rate to go up by an average of 214 percent when adding a driver age 16 to your coverage, according to CarInsurance.com rate data. You'll see in the table below how much it costs, on average, to add a teen driver in Louisiana, and how major insurers compare on price. GEICO Cas had the lowest auto insurance cost for adding a driver age 16 to a full coverage family policy, among insurers surveyed.

Cheapest Louisiana auto insurance for young drivers: Ages 18 to 25

Enter an age from 18 to 25 to see who has the best rates for young drivers in Louisiana, by company. You’ll see in the chart below which car insurance companies have the lowest rates for young drivers buying a full coverage policy. Average car insurance rates by age data shows that drivers typically pay higher rates until age 26, when rates begin to drop as drivers gain more experience on the road. But even young drivers can save money by comparing car insurance rates to see which company has the lowest rates, by qualifying for student discounts and by staying on their parents’ policy as long as possible.

Senior drivers: Cheap auto insurance for Louisiana drivers age 65 to 85

Below you can see average rates by company for drivers age 65 and over, buying a full coverage policy. While comparing car insurance quotes is always one of the primary ways to save on coverage, you can also see if you qualify for a mature driver discount or if you can trim rates by taking a defensive driving course.

Car insurance for Louisiana drivers with bad credit

Car insurance for drivers with bad credit costs significantly more than it does for those with good credit. Louisiana ranks 25th among the worst states for drivers with bad credit, as CarInsurance.com's data analysis shows. Compared to good credit drivers, those in Louisiana with bad credit pay 70 percent more, on average. The good news is that you can still shave some money off your coverage costs if you compare car insurance companies. You'll see below that the difference among major insurers is nearly $3,211 for a full coverage policy for a driver with bad credit. That's how much you can potentially save by comparing car insurance quotes.

Best car insurance companies in Louisiana

Scores are based on Insure.com’s “Best Insurance Companies” customer review survey of 3,700 customers. Companies not in the top 10 of market share do not qualify. All scores are out of 100.

 

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Largest car insurance companies in Louisiana

Source: A.M. Best; State/Line (P/C Lines)  - P/C, US; Data as of:November 28, 2018

Louisiana car insurance laws and resources

Average annual car insurance rates for major cities in Louisiana

Below you'll see how average annual rates for several of the largest cities in the state compare to state and national averages. Rates are for coverage of $100,000 per person/$300,000 per accident in liability and $50,000 of property damage coverage, with comprehensive and collision carrying a $500 deductible.

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