If you live in Louisiana, you probably know that car insurance is painfully expensive. Louisiana has the fourth-highest insurance rates in the nation. And it keeps getting worse: in 2016, rates went up 8 percent, on average.
Don’t despair! Compare.com can help you find the lowest rates and understand what coverage you need. Read on — or skip ahead to compare auto insurance quotes for Louisiana on Compare.com.
What are Louisiana’s Auto Insurance Requirements?
Like almost every state, Louisiana requires drivers to carry a certain amount of liability insurance.
The minimum auto insurance requirements for LA are 15/30/25. What does that mean?
- $15,000 per person for bodily injury liability and $30,000 per accident for bodily injury liability: This type of insurance pays for other people’s damages (like medical bills, lost wages, legal expenses, or pain and suffering) as a result of an accident you cause. It also can pay for your legal defense, if you’re sued by someone hurt in an accident.
- $25,000 per accident for property damage liability: This pays for damages to other people’s physical property (usually their cars) in an accident that’s your fault.
State law also says that Louisiana insurance policies must include uninsured/underinsured motorist bodily liability, unless the policy holder rejects this coverage in writing. This type of insurance protects you if you’re hurt in an accident caused by an uninsured or underinsured driver. Your UM/UIM coverage matches your bodily injury/property damage limits: 15/30, if you opt for state minimum insurance.
Louisiana insurance policies also must include $25,000 in uninsured motorist property damage, with a $250 deductible, unless your policy includes collision coverage.
Why is Louisiana Car Insurance so Expensive?
Good question. Part of the recent uptick in costs is caused by factors seen everywhere in the United States. More people are driving, so more people are crashing. Tech distractions are raising the accident rate, too. Are you guilty of using your phone in the car? And the cost to repair vehicles keeps rising, because of all the expensive electronics in new cars.
Auto insurance rates in Louisiana are also driven up by the state’s history of catastrophic events, like hurricanes and floods, and by the high rates of personal injury lawsuits. New Orleans residents have it the worst — it’s the second most expensive city for car insurance in the U.S., after Detroit.
Which Insurance Companies in Louisiana have the Cheapest Rates?
We wish we could give you a quick answer — but the truth is, there’s no single Louisiana insurance company that has the lowest rates for everybody. Every insurer calculates risk and premiums differently, which means insurance quotes for one person often differ by hundreds of dollars.
The only way to find the cheapest insurance is to compare Louisiana car insurance quotes side by side. You can do this on your own, by entering your info on several insurance companies’ sites and then checking to see who gives you the best quotes. But this can take hours! The quickest, easiest way is to use Compare.com.
Enter some basic information just once, then pick the coverage level you want. To get the absolute cheapest LA car insurance, choose state minimum coverage. We’ll show you quotes from different companies for a 15/30/25 policy, and then you can pick the cheapest.
Should I Buy More Than Louisiana's State Minimum Insurance Requirements?
Yes, and here’s why. In 2016, the average auto liability claim for bodily injury was $16,110. That exceeds the $15,000/person limit for Louisiana state minimum insurance — and that’s just an average. If you’re at fault in a serious crash, and the other driver sues you for $100,000 in medical bills and pain/suffering, you’ll be in big trouble. That’s why it’s wise to carry more car insurance if you can afford it.
Consider choosing a plan with higher liability limits and/or coverage like:
- Comprehensive and collision coverage, which pays to fix your car if it’s damaged by a hurricane, flood, fire or crash
- Medical payments coverage, which pays for necessary medical and funeral expenses due to an automobile accident. Medical payments covers you, your family members and other passengers in your car
Where Can I Get Reliable Coverage That's Affordable?
It can be tough to find that perfect compromise: car insurance that fits your budget but also offers enough protection for your assets. We recommend starting low, then increasing your coverage when you’re comparing quotes side by side. In other words, see what your rates are for LA state minimum coverage, then compare them to your quotes for better coverage. Compare.com makes it easy.
Here’s an example: We ran the numbers for a 27-year-old woman with a good driving record who’s shopping for auto insurance in Shreveport, LA. Her best quote for 15/30/25 state minimum coverage: $114 per month when she pays her premiums up front.
That’s not too bad! However, minimum insurance isn’t enough for our sample driver. Her Corolla is only a couple of years old, which means she needs collision and comprehensive coverage to protect it. So she compares quotes for Basic coverage, which gives her collision/comprehensive with a $1,000 deductible. Basic coverage has the same liability limits as state minimum. Now, her best quote is $172 per month.
If she wants better coverage with higher limits, she can go up to the Plus level. Plus coverage increases bodily injury and property damage liability to 50/100/50, with the same limits for uninsured motorist bodily injury. She gets $2,000 in medical payments; her collision/comprehensive deductible drops to $500; and now she gets towing and rental car coverage as well. Her best quote for Plus coverage: $210 per month.
Now that she knows her options, she can choose the best insurance that fits her budget. Your quotes will differ — the only way to find the best deal is to check the numbers for yourself.
What are the Penalties for Driving Without Insurance in Louisiana?
About 13 percent of Louisiana drivers are uninsured — the same as the average nationwide. But that doesn’t mean you should try it. If caught driving without insurance, you may have your registration revoked, your license plates canceled and your vehicle impounded. You may also have to pay a fine of $500 to $1,000.
You can be even be punished if someone else hits you and you don’t have insurance. Louisiana has a “No Pay, No Play” law that prohibits uninsured motorists from collecting the first $25,000 in property damage and the first $15,000 in personal injury losses, no matter who caused the accident.
So don’t drive uninsured! If you’re having trouble finding auto insurance you can afford, Compare.com can help. We’ll show you accurate, personalized and impartial LA auto insurance quotes so you can choose the one that fits your budget. Get started now.