INSURANCE - CAR INSURANCE

Average Cost of Car Insurance in Louisiana for 2024

Updated Nov. 14, 2023
Fact checked
Southern Farm Bureau is generally the cheapest car insurance in Louisiana for full coverage policies.

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From jazz to delicious cuisine, Louisiana has a rich culture and is a popular place to live and vacation. Unfortunately, it’s a densely populated state, so despite its lower cost of living, the average cost of car insurance in Louisiana is $2,586, compared to the national average of $1,582.

In some cities, the average premiums can be even pricier, but how much you pay is based on factors like your age, driving record, and credit history.

In this article

Key takeaways

  • The average cost of car insurance in Louisiana is $2,586 per year for full coverage policies.
  • State-minimum liability coverage averages $1,089 per year.
  • Teen drivers pay an average of $7,764 per year for coverage.

How much does car insurance cost in Louisiana?

Car insurance is more expensive in Louisiana than in other states. Full coverage policies that include collision, comprehensive, and liability insurance cost $2,586 per year — compared to the national average of $1,582.

Why is it so expensive? Louisiana has a denser population than other areas and a high percentage of uninsured drivers. According to the Insurance Research Council, 11.7% of drivers in the state are uninsured.

Avg. cost for full coverage Avg. cost for minimum coverage Cheapest insurance provider
$2,586/year $1,089/year Southern Farm Bureau
Avg. for young drivers Avg. cost for seniors Avg. for high-risk drivers
$7,764/year $2,623/year $3,768/year

Average cost of car insurance in Louisiana by provider

Several companies underwrite car insurance policies in Louisiana. While you can get insurance from well-known national companies like Allstate or State Farm, it’s wise to get quotes from smaller, regional insurers too.

Southern Farm Bureau had the lowest average premiums for full coverage policies, and Farm Bureau offered lower-than-average premiums for state-minimum liability coverage.

Provider Full coverage Minimum liability coverage
Southern Farm Bureau $1,653/year
$689/year
Farm Bureau $1,788/year
$660/year
Allstate
$2,622/year
$1,300/year
GEICO $2,462/year
$912/year
State Farm
$2,237/year $856/year
Progressive$2,834/year $1,082/year
USAA
$1,724/year $703/year

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How does credit score affect car insurance rates in Louisiana?

Like most states, Louisiana allows insurers to consider drivers’ credit histories when setting car insurance premiums. If you have poor credit, you’ll pay hundreds more per year than the state average.

Even those with average credit — a score between 650 and 699 — will pay substantially more for coverage, paying about $3,815 per year.

Credit health Avg. annual premium
Poor (550-649) $4,325/year
Average (650-699) $3,815/year
Good (700-749) $3,183/year
Excellent (750+) $2,664/year

Average car insurance rates for high-risk drivers in Louisiana

Car insurance premiums are already sky-high in Louisiana, so avoiding driving infractions is key to saving money. For example, the average annual premium for a driver with a driving under the influence (DUI) conviction is $4,389 per year.

Violation Avg. annual premium before violation* Avg. annual premium after violation Avg. cost increase
At-fault accident $2,586/year $3,535/year $949
DUI $2,586/year $4,389/year $1,803
Speeding ticket $2,586/year $3,093/year $507

*Assumes clean driving record with good credit

How does age affect car insurance rates in Louisiana?

Car insurance is expensive in Louisiana, but for teen drivers, rates can be staggeringly high. The average rate for 18-year-olds is a whopping $8,062 per year.

The median household income in Louisiana is $53,571, so families in Louisiana would pay about 15% of their household income to pay for a teen driver’s car insurance premiums.

Age Avg. annual premium
18 $8,062/year
25 $3,449/year
30 $3,001/year
40 $2,790/year
60 $2,683/year

Louisiana car insurance rates by city

Generally, if you live in an area with a higher-than-usual rate of accidents or auto theft, you’ll pay much more for auto coverage since you’re more likely to file a claim. That guideline is evident in New Orleans, which has the highest average premiums in Louisiana.

NeighborhoodScout gave New Orleans a crime rating of two, meaning 98% of cities in the U.S. are safer, so the higher premium isn’t surprising.

City Avg. annual full-coverage premium
New Orleans $3,986/year
Baton Rouge $3,132/year
Lake Charles $2,886/year
Alexandria $2,794/year
Lafayette $2,756/year
Shreveport $2,377/year

LA’s minimum car insurance requirements

Louisiana requires all drivers within the state to have car insurance that meets the following coverage minimums:

  • $15,000 for bodily injury protection for one person
  • $30,000 for bodily injury protection for two or more people
  • $25,000 in property damage protection

Those coverage limits are lower than what many other states require. And considering that the state has a high level of uninsured drivers, you may want to add collision and comprehensive coverage to your policy. While it will increase your car insurance cost, you could save money later on if you have to file a claim.

How to save money on car insurance in Louisiana

Your car insurance premiums are likely costly if you live in Louisiana. But you may be able to reduce your premiums by following these tips:

  • Increase your deductible: When you file a claim, you must pay the amount of your deductible for repairs or injuries before your insurance pays any money. Increasing the deductible, such as boosting it from $500 to $1,000, will reduce car insurance premiums.
  • Ask about discounts: If you have an existing policy, ask your agent about possible discounts. For example, depending on the insurer, you may qualify for discounts if you drive fewer-than-average miles per year, install an anti-theft device or bundle your coverage with a homeowners or renters insurance policy.
  • Consider usage-based insurance (UBI) policy: UBI bases your premiums on driving habits and mileage. So if you drive safely — for example, obeying speed limits, avoiding hard braking, and not driving late at night — you could save significant money. You can get UBI policies in Louisiana through several insurers, including Progressive and Root.
  • Shop around: As mentioned above, car insurance rates can vary dramatically between companies. If your premiums seem too high, shop around and request quotes from the best car insurance companies to find the lowest rates possible.

Methodology

Our analysis was conducted using six different auto insurance marketplaces to determine the average cost of auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.

FAQs about car insurance costs in LA

Is car insurance expensive in LA?

Car insurance in Louisiana is extremely expensive. The average annual cost of full coverage insurance in the state is $2,586, while the national average cost is $1,582.

How much is car insurance per year in LA?

The average cost of car insurance in Louisiana is $2,586 per year for full coverage policies and $1,089 per year for state-minimum liability coverage. 

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Author Details

Kat Tretina Kat Tretina is a personal finance expert focusing on practical financial matters, including student loans, debt repayment, side hustles, insurance, and healthcare. Drawing from her personal experience, she aims to simplify complex financial topics and provide individuals with the information they need to make informed decisions.