What you need to know about car insurance in Louisiana

Louisiana is known for its delicious food, dynamic music scene and historical attractions. However, the Pelican State has another distinction: it's the most expensive state for car insurance. Drivers pay an average of $2,883 annually for full coverage, while a bare-bones liability policy costs $722 annually.

According to the Insurance Research Council (IRC), an industry-sponsored organization, those high rates can be partly blamed on the state’s high litigation rate, which is more than twice the national average.

Louisiana also has a sizable number of drivers considered underinsured because they only carry the state-mandated minimum liability insurance, which is rarely enough to cover the costs of a major at-fault collision, the IRC says.

However, you may find more affordable coverage by taking advantage of discounts and shopping around for insurance.

Key highlights

• Drivers in Louisiana must have car insurance policies that meet 15/30/25 liability requirements.
• On average, state-minimum coverage in the state costs $60 per month, significantly higher than the national average of $42 monthly.
• Full coverage policies in Louisiana cost an average of $2,883 per year, about $1,000 more than the U.S. rate.

Understanding car insurance requirements in Louisiana

As is common in most states, Louisiana requires all drivers to have active car insurance policies. Your policy, at minimum, must meet the following liability coverages:

• Bodily injury liability, per person per accident: $15,000
• Bodily injury liability, per accident for all persons: $30,000
• Property damage liability, per incident: $25,000

These coverage limits, usually written as 15/30/25, are the state minimum. However, a policy that only meets these coverage limits may not provide adequate protection in you are in an at-fault accident. Based on your finances, experts recommend purchasing liability insurance with coverage limits of at least 50/100/50 or 100/300/100/.

Full coverage car insurance, which includes comprehensive and collision coverage for your own vehicle in addition to liability protection, is not required by law. But if you’ve financed or leased a newer vehicle, your financing institution may require you to carry this coverage. You may also need to purchase gap insurance, which would make up the shortfall between what you owe and what your vehicle is worth if it is totaled in an accident.

Average cost of car insurance in Louisiana

Louisiana tends to be more expensive than other states regarding car insurance. According to the Insurance Research Council, litigation costs and a large percentage of underinsured drivers have also caused insurers to increase their costs.

As a result, state minimum coverage in Louisiana averages $722 per year, approximately 44% higher than the national average.

If you opt for full coverage insurance, which includes liability, comprehensive, and collision insurance, the average cost is $2,883 per year in Louisiana — 52% higher than the national average.

The rates below were collected from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for the following: state minimum liability insurance, standard liability with coverage limits of 50/100/500, and full coverage with liability limits of 100/300/100 and $500 comprehensive and collision deductibles.

How to find cheap auto insurance in Louisiana

Although car insurance in Louisiana can be expensive, there are some ways to reduce the cost:

• Increase your deductible. The deductible is how much you must pay for damages or injuries before your insurance policy kicks in. Raising the deductible to cover more of the upfront cost after an accident will reduce your monthly or annual premiums.
• Combine coverage. Bundle your car insurance policy with other insurance products like life or homeowners insurance. Many insurers offer multi-policy discounts, and the savings can be as much as 25%.
• Drop collision and comprehensive insurance. If you have an older car, one you own outright, the cost of full coverage may be more than your vehicle is worth. Dropping collision insurance and comprehensive insurance can make smart financial sense.
• Shop around for coverage regularly. Insurance rates vary by company, so contact several insurers to get quotes for your desired coverage level.

Car insurance rates, by company, in Louisiana

In Louisiana, car insurance rates can vary by hundreds or even thousands between insurers. We found that Southern Farm Bureau was the cheapest insurer in the state, with full coverage policies averaging $1,973 per year. State Farm was at the other end of the spectrum, with an average annual premium of $3,570, about 24% higher than the state average.

Comparing car insurance quotes in Louisiana

Several factors affect your car insurance rates in Louisiana, such as your age, gender, ZIP code, credit score and insurer. The chart below outlines average rates for drivers around the Pelican State.

Louisiana car insurance cost by city

Where you live and park your vehicle significantly affects the cost of coverage. Densely populated areas, those with high levels of property crime and traffic, tend to be more expensive. In Louisiana, Baton Rouge and Monroe have the highest premiums, at $3,166 per year.

Frequently asked questions

How can I save on car insurance in Louisiana?

If you’ve already taken advantage of common discounts for bundling policies, paying your premium in full, and raising your deductible, one of the best ways to save money on car insurance in Louisiana is to sign up for usage-based insurance (UBI). In exchange for allowing your driving habits to be monitored via an app on your phone or in-car device, you could see savings of 10% or more, depending on your insurer.

Is Louisiana a no-fault state?

In a no-fault state, drivers are required to file a claim for injuries with their own insurer after an accident, regardless of who was at fault. There are only about a dozen no-fault states, but Louisiana isn't one of them, so the driver at fault for an accident is responsible for both damages and injuries.

Methodology

Editors collected rate information from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and $500 comprehensive and collision deductibles.

In addition, we also calculated rates for these hypothetical drivers, but with one or more of the following on their record: speeding ticket, at-fault accident, DUI/DWI, poor credit history, or a lapse in coverage.

We analyzed more than 53 million quotes, over 34,000 ZIP codes, and 170 insurance companies nationwide.

Note: 100/300/100 means up to $100,000 for bodily injury per person, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property you damage.