Car insurance in Louisiana

Posted on September 25, 2014

Auto insurance can be pricey if you live in Louisiana. However, there are ways you can pay below average premiums for car insurance, while still adhering to state-mandated guidelines. Here is the latest info pertaining to Louisiana car insurance. This will help you choose the auto insurance package that works best for you.

Louisiana Minimum Liability Coverage

In insurance lingo, the minimum required insurance coverage for each vehicle owned in the state of Louisiana is 15/30/25. In plain English, Louisiana drivers are required to purchase no less than $15,000 in Personal Injury Protection (PIP), $30,000 in per-accident protection, and $25,000 in coverage against property damage.

Penalties for Driving Without Insurance in Louisiana

For first offenders, driving without insurance in Louisiana can lead to a fine of $100, license plate impoundment, and a reinstatement fee of $50. Second offenses result in fines of up to $250. Drivers with three or more convictions face fines of up to five hundred dollars. Fortunately, Louisiana is not overburdened with uninsured vehicles by comparison to other U.S. States.

Auto Insurance Rates in Louisiana

The average annual auto insurance premium for a driver in the state of Louisiana was $1,842 in 2016, placing Louisiana high above the national average of $1,347 a year for car insurance. Some years, Louisiana has the highest average annual car insurance premium of all U.S. states. According to experts at Top50States.com, this is largely the result of a chronically poor economy combined with the horrendous weather conditions that have plagued that region over the past ten years.

Determining factors in the calculation of car insurance premiums include demographics like local climate, economic stability, neighborhood crime rates, population density and availability of competitive insurance carriers. Other factors affecting annual auto insurance rates are the driver’s age, gender, traffic history and marital status, among other things.

Low Cost Car Insurance Programs in Louisiana

Like most states, Louisiana auto insurance companies offer various discounts for all sorts of exemplary behavior. Super safe drivers might score an Accident-Free Discount or a Good Driver Discount. Good student discounts are also available, as well as defensive driving course discounts, multiple auto discounts, multiple vehicle discounts and multiple policy discounts. Other low cost options include passive restraint discounts, anti-theft discounts and vehicle safety discounts. Some Louisiana residents even go as far as to register their vehicles in other states to lower their annual rates.

Obtaining Auto Insurance Quotes in Louisiana

The state of Louisiana is home to dozens of insurance carriers providing auto insurance coverage at competitive rates. Popular options include national favorites like ABC, Geico, Allstate, The Hartford, State Farm, and 21^st Century Insurance. Some Louisiana car owners prefer regional carriers like Direct General or Insurance Network of Louisiana. Call several agents near you, and/or obtain numerous free online quotes. Either way, be sure to ask about their discounts. Then compare quotes, select the cheapest policy that suits your purposes, and you’re done.

Louisiana Car Insurance

Here is all the latest information pertaining to Louisiana car insurance.

Drivers in Louisiana can look here to learn of Louisiana median incomes, Louisiana poverty rates, statistics on Louisiana drivers, and Louisiana zip code info. You can also scan car insurance quotes from eight different Louisiana zip codes, from the lowest priced to the highest in terms of car insurance premiums. The difference in auto insurance premium rates across zip codes may surprise you.

Read about the many ways in which Louisiana drivers can lower the cost of their auto insurance premium rates. Find out which types and amounts of car insurance coverage Louisiana drivers need. See a list of the largest car insurance companies in the state of Louisiana, along with a list of the largest car insurance companies in the United States. You can even read a selection of odd and outdated Louisiana traffic laws that are still “on the books.”

These fast facts will benefit any driver who is thinking about purchasing a Louisiana car insurance policy.

Louisiana Car Insurance Statistics

According to a 2015 population estimate, the state of Louisiana is home to nearly 4.7 million people. The state’s average population density is about 94 people per square mile. More than 25 percent of Louisiana residents (well over 1.2 million people) live in the greater New Orleans metropolitan area. The city of New Orleans has a resident population of more than 389,000. The population density of the city of New Orleans is about 2,274 people per square mile. This is one reason why the car insurance premium rates are higher in New Orleans than in the rest of the state. In fact, one New Orleans zip code is ranked as the 5^th most expensive zip code in America to buy car insurance.

The median age of the population of Louisiana is about 36.4 years. Louisiana’s poverty rate is around 19.6 percent, quite a lot higher than the national average poverty rate of 13.5 percent. Nearly one in five Louisiana residents is currently living at or below the poverty line. Similarly, Louisiana’s unemployment rate is around 5.8 percent, a far cry above the national average unemployment rate of 4.4 percent. The only states in America where the unemployment rate is higher are Alaska, New Mexico, and Washington DC.

Recently, the Insurance Research Council ran a study of drivers in the state of Louisiana. The results of the study concluded that approximately 13.9 percent (roughly one in seven) vehicles in Louisiana are uninsured.

Louisiana drivers often wonder about the statewide “average” annual premium rate for Louisiana car insurance. According to a statistical study, the statewide “average” annual premium rate for a car insurance policy purchased in the state of Louisiana was about $2,190 as of March 2017. Compare this to the national average car insurance rate for the same time period, which was about $1,355. Louisiana is actually the 2^nd most expensive state in the nation to buy car insurance. Only Michigan is more expensive.

In spite of the vague notion of a statewide average, your Louisiana car insurance premium rate will depend a lot on your driving history, as well as the demographics of your particular Louisiana zip code

The 10 Largest Louisiana Car Insurance Companies

Here is a list of the ten largest car insurance companies in Louisiana, based on each company’s total revenue, which provides an indication of their total market share within the state of Louisiana.

Rank	Company	Premiums ($)	Market Share (%)
1	State Farm Group	$1,123,876	32.1
2	Progressive Insurance Group	$479,452	13.69
3	Allstate Insurance Group	$433,542	12.38
4	Berkshire Hathaway Insurance	$290,938	8.31
5	Southern Farm Bureau Casualty	$183,816	5.25
6	Liberty Mutual Insurance	$175,339	5.01
7	USAA Group	$164,269	4.69
8	Affirmative Insurance Group	$119,828	3.42
9	GoAuto Insurance Company	$58,161	1.66
10	Safeway Insurance Group	$53,519	1.53

As you can see from this list, State Farm is the most popular Louisiana car insurance carrier by far, holding nearly a third of the market share for all car insurance policies sold in the state. Still, there are many major Louisiana car insurance companies to select from, as well as many smaller, regional carriers. There is really no such thing as The One Best Louisiana Car Insurance Company.

Incidentally, the ten largest car insurance companies in the USA, according to a study from insure.com, are Allstate Insurance, State Farm Insurance, Geico, Progressive Insurance, Nationwide Group, AAA, Liberty Mutual Insurance, 21^st Century Insurance, GMAC, and AIG, in that order. Like the list shown above, these car insurance companies were ranked by the total dollar amount in annual premiums written.

Cutting Costs on Louisiana Car Insurance

As mentioned, the state of Louisiana ranks 2^nd highest among states in average annual premium rates on car insurance. However, Louisiana drivers have numerous ways to reduce the rates on their personal car insurance policies.

For one thing, they should peruse recent consumer reviews of various Louisiana car insurance companies. Studying independent car insurance reviews can give you some idea of which auto insurance company best meets your specifications. Car insurance companies are typically competitive, with minor differences in their rates and price reductions. All insurance companies receive customer complaints. This is a fact of life for insurance carriers.

Create a list of the best Louisiana car insurance companies for you. Then visit the website of each insurance company, and compare online quotes across several zip codes. Type in the zip code where you live, the zip code where you work, and/or the zip code where you attend school, for instance. Don’t forget to check each company’s discounts on Louisiana car insurance.

Comparing quotes and remaining aware of available discounts is the best way to save money on Louisiana car insurance.

What Types Of Car Insurance Do Louisiana Drivers Need?

According to Louisiana state law, the minimum liability requirements for car insurance policies are $15,000 in bodily injury protection for each person injured, $30,000 in per accident insurance, and $25,000 insurance to cover the cost of property damage. Unfortunately, state-mandated minimum liability limits on car insurance policies are often not enough to cover the cost of a real auto accident.

That’s why insurance experts in America recommend that Louisiana drivers (not to mention all drivers in America) purchase more than the minimum amount of auto insurance required by the state. Suggested coverage amounts are $100,000 coverage for personal injury protection, $300,000 insurance against bodily injury to others, and at least $50,000 insurance to cover the cost of property damage.

Also highly recommended (even if not required) for Louisiana drivers is uninsured / underinsured motorist protection (UMI). Louisiana has a high rate of uninsured drivers, and because of the low state minimum requirements, even cars that do have insurance tend to be underinsured.

For added protection, Louisiana drivers can also buy comprehensive and collision coverage. These types of insurance will pay the cost of vehicle repairs for catastrophic events such as collisions, animal strikes, falling objects, bad weather, wildfires, floods, vandalism, and car theft, to name a few.

Odd and Outdated Louisiana Traffic Laws

In Louisiana, it is illegal to dare someone to stand on railroad tracks.
It is illegal in New Orleans for a woman to drive a car unless her husband walks in front of it waving a flag. (This once common law is still “in effect” in many states)
“Fancy bike riding” is also illegal in New Orleans. (Does this mean riding your bike in a “fancy” way? Or decorating your bike in a “fancy” manner? Just to be safe, avoid both.)
Again in New Orleans, it is illegal to tie horses to a tree on a public highway. (Better to just let them run free in highway traffic).
It is also illegal in New Orleans to tie an alligator to a fire hydrant. (The next time you ride your alligator to work, park it in the swamp).

Best And Worst Zip Codes For Louisiana Car Insurance

Yearly premium rates on Louisiana car insurance policies range broadly between zip codes within the state of Louisiana.

Premium rates on car insurance are affected not only by a driver’s on-road behavior, but also by the driver’s zip code demographics, such as population density, unemployment rates, the median resident age, median income levels, poverty stats, crime rates, and the percentage of uninsured drivers on the roads, among other things.

Here is a list of the four most expensive zip codes to buy Louisiana car insurance. All of them are located in New Orleans. Annual premium rates in these zip codes can range from about $2,530 to more than $4,500.

Zip Code	Pop Density	Unemployed %	Poverty %
70117 (New Orleans)	4,191	9.80%	31.40%

This zip code is home to about 23,000 people. The population density here is nearly twice the average for the city of New Orleans, and more than 40 times the state average. Unemployment and poverty are also both well above the state average in this neighborhood.

Zip Code	Pop Density	Unemployed %	Poverty %
70127 (New Orleans)	3,556	11.70%	38.20%

This zip code is home to more than 25,000 people. The unemployment and poverty rates in this neighborhood are around twice the state average of 5.8 percent and 19.6 percent, respectively.

Zip Code	Pop Density	Unemployed %	Poverty %
70126 (New Orleans)	2,488	14.90%	35.10%

This urban zip code is also home to more than 25,000 people. The unemployment rate far exceeds the 5.8 percent state average. The poverty rate is also unusually high in this neighborhood.

Zip Code	Pop Density	Unemployed %	Poverty %
70128 (New Orleans)	4,038	7.80%	24.00%

Approximately 20,000 people live in this small urban neighborhood. The population density is quite high here. As well, the unemployment and poverty rates are above the state average.

Compare the above Louisiana zip codes to the ones shown below. These are the four least expensive zip codes (on average) in the state of Louisiana to buy auto insurance. Yearly premium rates can range from about $1,125 to about $2,050.

Zip Code	Pop Density	Unemployed %	Poverty %
71439 (Hornbeck)	31	3.10%	13.60%

This Vernon and Sabine Parish zip code has a resident population of under 1,700. The population density is very low. The unemployment and poverty rates are both well below the state average.

Zip Code	Pop Density	Unemployed %	Poverty %
71075 (Cullen)	170	4.90%	34.70%

More than 6,000 people live in this sparsely populated Webster Parish neighborhood. Unemployment is below the state average, although the poverty rate is quite a bit above the state average. It is interesting that the median resident age in this zip code is 44.5 years, more than 8 years older than the state average median age. This may help explain the low rates on Louisiana car insurance.

Zip Code	Pop Density	Unemployed %	Poverty %
71071 (Sarepta)	60	6.60%	5.80%

This rural neighborhood is home to less than 3,000 people. The population density is very low, and the poverty rate falls far under the state average. Unemployment is slightly high here, but not by enough to make much difference in Louisiana car insurance rates.

Zip Code	Pop Density	Unemployed %	Poverty %
71429 (Florien)	10	4.90%	18.50%

This Sabine Parish zip code is home to just over 2,500 people. The unemployment rate and the poverty rate are both below the state average in this area. Population density is also low.

Altogether, the state of Louisiana is home to 719 zip codes spanning 64 parishes with 479 cities from Abbeville to Zwolle, and every town in between. There is quite a difference in premium rates between the cheapest zip codes and the priciest zip codes to buy Louisiana car insurance.

Compare quotes for your Louisiana zip code. See how much you can save on car insurance in the state of Louisiana.

by admin