Drivers in Louisiana may be paying more for car insurance this year than they were last year, potentially by a lot. Inflation and supply chain shortages in recent years have both contributed to the rising cost of car insurance for drivers across the country, not just in the Pelican State.
That said, car insurance rates in Louisiana are some of the highest in the nation. But Louisiana drivers who’ve seen their rates go up can still search for more affordable car insurance by shopping around to find cheaper coverage.
Did car insurance rates go up in Louisiana?
Yes, car insurance rates are going up in Louisiana. In 2022, some residents reported increases of up to 35% compared to the year before. [1] But the sudden increase in car insurance rates isn’t specific to Louisiana. Drivers across the country are seeing their rates go up, sometimes significantly.
Why are auto insurance rates going up in Louisiana?
Insurance companies raise rates for a variety of reasons, including things you can’t control, like if widespread hurricane damage means the company had to pay out a bunch of claims all at once, or if repair costs have gone up in your area.
Your rates may also go up because of things you can control, like adding a new car to your policy, or a change in your policy limits. There are several factors that could cause auto insurance premiums to rise in Louisiana.
Hurricanes
Hurricanes are a consistent issue in Louisiana. In August of 2020, Hurricane Laura made landfall as a category 4 hurricane, causing more than $17.5 billion in damage. Just two months later, Hurricane Zeta caused another $1.25 billion in damage. [2]
While there may be some question about whether or not a homeowners insurance policy pays out after a hurricane, car insurance coverage is much clearer. Drivers with comprehensive car insurance coverage are covered for weather-related damages, including wind and flood, which means car insurance companies in Louisiana will likely pay out hundreds of millions of dollars or more in claims for flooded and damaged cars after a hurricane. Unfortunately, big losses for the insurance company mean higher rates for their customers.
Inflation
According to the New York Times, the U.S. government reported in April that average prices had risen 8.3% since April of 2021. [3] America hasn’t seen inflation rates this high in 40 years, affecting the cost of everything — including your car insurance premium.
Inflation is pushing operating costs for the insurance company upward, including the costs of car parts and repairs, which means you can expect those costs to be passed on to you in the form of a rate increase the next time your policy renews.
Supply chain disruptions
In addition to high inflation rates, the overall value of cars, both new and used, went up significantly from 2021 to 2022, due in part to supply chain issues that have affected auto manufacturing.
The cost to repair or replace a used car after an accident has gone up about 26% and the cost of new vehicles has gone up 10%. [4] This means insurance companies saw a steep increase in the amount they are paying for claims, increasing car insurance rates for drivers everywhere, not just in Louisiana.
Your driving profile
Insurance rates are based on a number of factors, many of which are specific to you, like your age, ZIP code, driving history, and the type of car you drive. You could see an increase in your rates if something in your life has changed, like if you moved from a rural part of the state to a big city, or if you had a recent accident or claim.
How much is the average car insurance rate in Louisiana?
Drivers in Louisiana pay an average of $2,906 per year for full coverage car insurance, making Louisiana the second most expensive state in the nation for car insurance, beat only by Florida.
Insurance companies use statistical information in your city or ZIP code, like the number of accidents reported per year in your area, to help set rates for drivers who live there, which means drivers in one city could pay much more than drivers in another.
For example, drivers in Shreveport pay an average of $2,654 per year for full coverage car insurance, while drivers in New Orleans pay an average of $4,508 per year.
Drivers who live on the coast will likely pay a different rate than drivers in the northern part of the state, while drivers in big cities should expect to pay more than drivers in rural areas. Here’s how much Louisiana drivers pay for car insurance in the ten biggest cities in Louisiana:
New Orleans: $4,508
Baton Rouge: $3,490
Shreveport: $2,654
Metairie: $3,526
Lafayette: $3,010
Lake Charles: $3,033
Bossier City: $2,442
Kenner: $3,607
Monroe: $2,971
Alexandria: $3,107
How much is car insurance per month in Louisiana?
Drivers in Louisiana pay an average of about $242 per month for full-coverage car insurance. However, drivers who carry only the minimum coverage required by the state pay an average of $993 per year, which breaks down to around $83 per month.
This is cheaper than full coverage insurance, but the state minimum insurance requirements only mandate liability coverage, and not much of it. Drivers who need comprehensive and collision coverage should purchase full coverage insurance, and drivers who want to have more coverage in case of an accident should consider higher levels of liability insurance.
→ Learn more about how much car insurance you need
Will my car insurance increase after an accident in Louisiana?
Maybe. If you are in an accident that isn’t your fault, like if a flood damages your car or if you’re hit by someone else, it likely won’t impact your insurance rates. However, an at-fault accident will probably raise your rates, and multiple accidents could mean your policy won’t be renewed and you’ll have to find new coverage.
Some car insurance companies offer first accident forgiveness or other benefits that could help keep your rates low, but the odds are good an at-fault accident will cause your rates to go up.
And if the car accident involves another violation, like reckless driving or running a red light, you can expect your rates to increase by a lot.
Violation | Average annual rate | Percent increase |
|---|---|---|
Hit and Run | $4,537 | 50% |
DUI | $4,792 | 58% |
Driving with a suspended license | $4,774 | 58% |
Racing | $4,636 | 53% |
Reckless Driving | $4,598 | 52% |
At-fault Accident | $4,412 | 46% |
Driving with an open container | $4,290 | 42% |
Speeding Ticket | $4,481 | 48% |
Passing a school bus | $3,774 | 25% |
Improper passing | $3,765 | 24% |
Following too closely | $3,765 | 25% |
Illegal turn | $3,765 | 25% |
Failure to stop at a red light | $3,765 | 25% |
Failure to yield | $3,765 | 25% |
Failure to show documents | $3,651 | 21% |
Driving without Lights | $3,640 | 20% |
Driving with expired registration | $3,651 | 21% |
Not at-fault Accident | $3,024 | 3% |
Frequently asked questions
Why are Louisiana auto insurance rates so high?
Louisiana has a combination of factors that contribute to higher insurance rates, including frequent severe weather, a high percentage of uninsured drivers, and a significant number of car accident-related lawsuits.
How can I lower my car insurance rates in Louisiana?
The best way to save money on car insurance is to compare quotes from multiple companies so you know you are getting the best rate. Other ways to keep your rates low are keeping your driving record clean, bundling policies with one insurance company, and taking advantage of any available discounts.
What is the state minimum car insurance in Louisiana?
Louisiana state law requires drivers to have a minimum of 15/30/25 in liability coverage. This breaks down to $15,000 in bodily injury liability coverage per person and $30,000 per accident, with $25,000 in property damage liability coverage.
Does car insurance affect my credit score?
According to Experian, car insurance companies don't report your payments to the various credit bureaus, which means paying your car insurance doesn’t impact your credit score. However, if you have unpaid premiums that get reported to a collection agency that debt could impact your credit score.
Methodology
Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states, plus Washington, D.C.
For full coverage policies, the following coverage limits were used:
Bodily injury liability: 50/100
Property damage liability: $50,000
Uninsured/underinsured motorist: 50/100
Comprehensive: $500 deductible
Collision: $500 deductible
In some cases, additional coverages were added where required by the state or insurer.
Rates for overall average rate, rates by ZIP code, and cheapest companies determined using averages for single drivers age 30, 35, and 45. Our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles per year.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of insurance costs. Your actual quotes may differ.
