The reason most people never secure the cheapest car insurance in Louisiana is that they don’t take the time to research the insurance companies who set their rates.
If you’re willing to spend a little time doing that research, you can uncover the factors that insurance companies use to determine what you pay for insurance.
Once you understand the mindset of an insurance company, you have stronger points of negotiation when talking to insurance agents.
Living in Louisiana does have an impact on what you pay for car insurance, and we’ll talk about whether your location is likely to hurt or help you in negotiations.
Once you start comparing insurance quotes online, you’ll notice that different companies often offer dramatically different prices.
Cheapest Car Insurance in Louisiana
Here are the 4 companies that offer the cheapest car insurance in Louisiana:
There’s more to Progressive than the Flo character that you see on television. The company was initially founded in 1937 and was the first to start giving quotes from competitors through its website.
Today, it’s known for offering unique discount programs. For instance, you now have the option to name your price, which is an interactive way to reduce your car insurance bill.
Learn More: Progressive Car Insurance Review
Liberty Mutual moved into the Louisiana car insurance market with its first in-state office in 1947.
It has since made a name for itself by offering discount programs for students attending Tulane University, Louisiana State University, and Loyola University.
Learn More: Liberty Mutual Car Insurance Review
Founded in 1937, Allstate is one of the longest-standing car insurance companies available today.
Not only does the company offer a variety of discount programs and services available for bundling, but it gives back to the country by contributing to projects that rebuild communities after natural disasters strike.
Learn More: Allstate Auto Insurance Review
If you’re interested in finding an insurance company that offers multiple payment structures, online account management, and optional coverage additions like new car replacement, put MetLife high on your shopping list.
This company allows you to save more money every year that you maintain your insurance without filing a claim.
Learn More: MetLife Auto Insurance Review
What Is Mandatory for Car Insurance in Louisiana?
Liability car insurance is designed to cover property damages or bodily injury that you cause to another person or their property.
Keep in mind, however, that it doesn’t cover your bodily injuries or any damage to your vehicle. For this you can purchase additional coverage, so your bodily injury and property damages are included if you cause an accident.
The minimum liability coverage that all vehicle owners in Louisiana are required to maintain includes:
- $15,000 bodily injury per person
- $30,000 bodily injury for multiple people
- $25,000 property damage
Once you secure a minimum liability policy, it covers you, your family members, and any other person authorized to drive your vehicle.
Louisiana law allows the state to charge you fines and fees up to $1,000 for driving without at least this minimum insurance protection. You may also receive a fine if you’re caught driving without proper proof of insurance.
Drivers may have to pay this fine even if they have adequate protection but don’t have evidence to show if they’re pulled over for a traffic stop.
How Much Is Car Insurance in Louisiana?
With an average premium of just over $1,200, Louisiana is listed as one of the most expensive states for car insurance.
The average premium increased by more than $100 between 2011 and 2015, placing Louisiana well above the national average.
|Average Cost of Car Insurance in Louisiana||$1,231.77|
|National Average Cost of Car Insurance||$889.01|
Insurance companies use many factors when determining the insurance rates offered to individuals.
Four of these factors are directly related to your state of residence, including statewide traffic statistics, vehicle theft rates, population density, and disposable income.
According to data reported by the NAIC, there was an average of 0.13 fatal accidents for every 1,000 vehicles registered in the United States in 2014.
Compare that to an average of 0.20 fatal accidents per 1,000 cars registered in Louisiana in the same year, and you see why this factor may count against you when trying to secure the cheapest car insurance in Louisiana.
Above-average fatalities mean increased risk for insurance companies.
Adding to the risk is the fact that registered vehicles in Louisiana traveled close to 13,000 miles in 2014. This rate is a bit higher than the national average of 12,000 miles per registered vehicle, which could justify higher insurance premiums for Louisiana drivers.
Vehicle Theft Rates
According to the 2016 Crime in the United States report released by the FBI, there were more than 10,000 auto thefts in that year for Louisiana alone.
That equals approximately 221 robberies per 100,000 inhabitants, which is a bit lower than the national average of 227.6 thefts per 100,000 inhabitants.
This factor could justify slightly lower insurance premiums for Louisiana residents, but your rate may go right back up a bit if you add one of the following vehicles to your policy:
- 2006 Ford Pickup
- 2006 Chevrolet Pickup
- 2008 Honda Accord
- 2015 Nissan Altima
- 2017 Toyota Camry
- 2007 GMC Pickup
- 2001 Dodge Pickup
- 2008 Chevrolet Impala
- 2016 Toyota Corolla
- 2012 Honda Civic
These vehicles were all listed on the 2018 Hot Wheels Report, which is released annually by the National Insurance Crime Bureau.
The report identifies the cars that get stolen the most in the country as a whole, as well as in each state, which signals to the insurance companies that these cars are potentially at high risk for car theft in future years.
Population density refers to the number of people residing in every square inch of a state. As this number increases, the number of vehicles crowded into each square mile also increases statistically, leading to more car accident claims and a higher risk for insurers.
The NAIC report tells us that approximately 107 people were residing in each square mile of Louisiana in 2014. This rate is slightly higher than the national average, which is about 90 people per square mile.
The difference is so slight that it isn’t likely to have a dramatic impact on your overall car insurance premium.
Disposable income seems like a positive thing, but it isn’t always good news for a car insurance company. People who have more spending money tend to invest in cars that are more expensive to replace or repair, which means higher claims if those vehicles are involved in an accident.
The average disposable income for Louisiana residents in 2014 is less than $38,000, which represents a small increase from 2013 and 2012.
The national average is close to $41,000 for the same year, so this may work in favor of those trying to secure cheap car insurance in Louisiana.
3 Ways to Reduce the Cost of Car Insurance in Louisiana
You’re ready to start comparing rates to find the cheapest car insurance in Louisiana, but there are some factors beyond your location that may impact the quotes that you receive.
While you always have to pay for some car insurance in Louisiana, some variables may help you minimize the premium.
Minimum Liability Coverage
This policy option is only valid if you’ve paid for your vehicle in full, because lenders typically require that you carry full coverage.
A general rule of thumb is to carry full coverage on any car that is worth at least ten times the insurance premium. If you own the vehicle and it’s worth less than ten times the premium, you can save money by purchasing a minimum liability policy.
Bundle Insurance Products
Many large insurance companies now offer a wide variety of products including:
- Homeowners Insurance
- Renter’s Insurance
- Antique Car Insurance
- Motorcycle Insurance
- RV Insurance
- Life Insurance
When you agree to purchase multiple insurance policies from one company, or bundle insurance products, it may give you a discount on all of the included policies.
Most insurance companies now extend discounts to certain groups, but you have to ask or research their website to learn about these opportunities to reduce your premium.
New programs are often added without a lot of advertisement, so it’s always worth talking to your insurance agent to discuss further options when it’s time to renew your policy.
Now that you have a clear understanding of the factors that can reduce your car insurance premium, you’re probably thinking about securing online quotes and contacting at least a couple of companies.
Before you do that, make sure that you have all of the information needed to apply for a policy.
Start with social security numbers and contact information for every driver that you want to include on the policy.
Information regarding your vehicles is also needed, including details about anti-theft devices and other high-security features that may win you an extra discount.
What Can Increase the Cost of Your Car Insurance in Louisiana?
You know all about the factors that increase car insurance premiums in Louisiana. It’s now time to touch on some elements that can potentially sabotage your efforts to secure the cheapest insurance policy.
- Bad Credit: If your credit score has tanked due to difficult financial circumstances, you may see an increase in your car insurance rate. Insurance companies look at bad credit as a sign that you may not pay for your car insurance policy consistently, and they charge you more as a result.
- Marital Status: If you’re single, some insurance companies may charge you more for auto coverage. The reasoning is that single people are more likely to drive recklessly or have accidents. While this certainly isn’t true of all single people, insurance companies don’t have the luxury of getting to know every customer before determining their rate.
- Prior Claims: If you’ve filed multiple insurance claims in the past, your new insurance company may decide to charge you a bit more for your policy. You likely had valid reasons to file those past claims, but insurance companies see that history as an indicator that you may file new claims in the future.
Shopping For Car Insurance In Louisiana
It’s time to take all of this information and apply it out in the real world. Start by securing at least three car insurance quotes online.
No matter the make and model of your vehicle, it pays to shop around when looking for car insurance.
Calling companies directly is a great way of assessing their service right off the bat and accessing the information online can be quicker and easier.*While we make every effort to keep our site updated, please be aware that "timely" information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.