Cheap Car Insurance in Louisiana: Best in 2023

Car insurance is mandatory in Louisiana, but it can be difficult to locate cheap coverage. The easiest method to acquire affordable auto coverage is to get quotes from various companies. In this article, we will discuss the best cheap car insurance in Louisiana and how this insurance works.

What is Cheap Car Insurance in Louisiana?

Finding cheap car insurance in Louisiana depends on various factors, such as your driving history, age, the type of car you drive, and the coverage you need. It’s essential to compare quotes from multiple insurance providers to find the best rate for your specific situation. Consider factors like liability coverage, comprehensive and collision coverage, and deductibles when getting quotes. 

Additionally, maintaining a good driving record and bundling insurance policies can often lead to lower premiums. Some insurance companies that have been known to offer competitive rates in Louisiana include State Farm, Geico, and Progressive. Remember that each person’s situation is unique, so it’s crucial to obtain personalized quotes to determine the most affordable option tailored to your needs. Online comparison tools and contacting local insurance agents can assist you in the process of finding the cheapest car insurance in Louisiana.

How Does Car Insurance Work in Louisiana?

Car insurance in Louisiana, like in many other states, operates based on a system of mandatory coverage and various types of optional coverage.

#1. Mandatory Coverage

Louisiana law requires drivers to have liability insurance. Liability insurance covers injuries or damages to other people or property if you are at fault in an accident. The minimum liability coverage requirements in Louisiana typically include bodily injury liability per person, bodily injury liability per accident, and property damage liability.

#2. Optional Coverages

While liability insurance is mandatory, drivers can also opt for additional coverages like comprehensive insurance (which covers non-collision-related damages such as theft, vandalism, or natural disasters), collision insurance (which covers damages to your car in the event of a collision), medical payments coverage (which pays for medical expenses for you and your passengers after an accident), and uninsured or underinsured motorist coverage (protects you if you’re in an accident with a driver who doesn’t have insurance or doesn’t have enough insurance to cover your damages).

#3. Proof of Insurance

Drivers must carry proof of insurance in their vehicles at all times. Failure to provide proof of insurance when requested can result in fines and other penalties.

#4. Rates and Factors

Car insurance rates are determined by various factors, including your driving history, the type of car you drive, your location, and the coverage options you choose. Maintaining a clean driving record and opting for higher deductibles can often help lower your insurance premiums.

#5. Penalties for Non-Compliance

Driving without insurance in Louisiana can result in fines, license suspensions, and vehicle impoundment. It’s crucial to maintain the required insurance coverage to avoid legal consequences.

In addition, drivers in Louisiana must have certain levels of liability coverage in case of an accident, so it’s crucial that they understand these requirements.

Louisiana Car Insurance Requirements

Minimum liability insurance requirements are enforced in Louisiana, as they are in most states. The Louisiana Department of Insurance specifies the following coverages as mandatory for drivers inside the state:

• Liability insurance for bodily injury: $15,000 per person, $30,000 per accident
• The per-incident property damage liability limit is $25,000.

Although liability insurance is all that is required by law in the state of Louisiana, many motorists choose to purchase extra forms of insurance for better peace of mind. This may involve:

• Insurance for Crashes
• Comprehensive coverage
• Protection against drivers who have inadequate insurance
• Payment of Medical Expenses

In the event of an accident, Louisiana PIP will not cover you.

Factors That Impact Cheap Rates in Louisiana

Insurers use a wide range of information beyond just your location when setting premiums. The four most common reasons for higher costs for car insurance are outlined below.

#1. Insurance for a Young Driver

It’s possible that your premium will climb significantly if you add a teen driver to your policy. Insurers charge extra for teen drivers because they know that teens are more likely to be in an accident than any other age group. We found that the following insurance providers in Louisiana may be able to help keep the cost of adding a teen to your coverage to a minimum:

#2. A Traffic Violation Ticket

A rise in your insurance cost that lasts for three years can result from just one speeding ticket. You can reduce the impact of a traffic ticket on your premiums by taking a defensive driving course or enrolling in a telematics program offered by your insurance company. If you’ve earned a speeding ticket in Louisiana, you may want to shop around for car insurance. The following companies have the cheapest average rates for drivers with a single speeding violation on their record.

#3. A Collision in Which You Were at Fault

You can expect a premium hike lasting up to five years if you have an accident in Louisiana. However, if you have accident forgiveness built into your policy, you might not have to worry about paying more than you already do after a single accident. If you are a driver in Louisiana with a single accident on your record, you may want to shop around and see if you can save money by switching to one of these companies, which often charge lower rates:

#4. Having a Reputation as a Reckless Driver

Finding an insurer ready to deal with you may be difficult if you are classified as a high-risk driver. In general, if you have a history of traffic violations such as several speeding tickets or at-fault accidents, or if you have been convicted of a DUI (the most serious traffic violation), you may be considered a high-risk customer by your insurance provider. High-risk drivers can find insurance through specialized companies, but the premiums they charge are typically more than the statewide average. If you live in Louisiana and are shopping around for cheap high-risk car insurance, you may want to look into the following firms.

Who Pays Most for Car Insurance?

Several factors influence how much individuals pay for car insurance. Insurance premiums are typically determined based on risk factors that vary from person to person. Here are some groups of people who might pay higher premiums:

• Young Drivers: Teenagers and young adults often pay higher premiums due to their lack of experience and statistically higher likelihood of being involved in accidents.
• Drivers with Poor Records: Individuals with a history of accidents, traffic violations, or DUI convictions are considered high-risk and usually pay more for insurance.
• Urban Residents: People living in densely populated areas, where accidents and thefts are more common, tend to pay higher premiums.
• Luxury or Sports Car Owners: Owners of expensive or high-performance cars usually pay more because these vehicles are costly to repair or replace.
• Individuals with Low Credit Scores: Some states allow insurance companies to consider credit scores when setting premiums. Those with lower scores might pay higher rates.
• Drivers with Limited Coverage: Opting for minimal coverage might seem cost-effective initially but can lead to higher out-of-pocket expenses in case of an accident.
• Uninsured Drivers: In regions with a high number of uninsured drivers, insured motorists might pay higher premiums to compensate for the increased risk.
• Male Drivers: Historically, statistics have shown that male drivers are more likely to be involved in accidents, leading to slightly higher premiums for men.

It’s important to note that insurance costs are highly individualized and can vary significantly based on these and other factors. Insurers use complex algorithms to assess risk and determine premiums, so rates can differ widely even among people with similar profiles. Shopping around and comparing quotes from multiple insurance providers is essential to finding the best rate tailored to your specific circumstances.

How to Get the Cheapest Car Insurance in Louisiana

If you live in Louisiana and are looking for ways to reduce the cost of car insurance, you have a few options. Take into account the following strategies:

#1. Compare Prices

Getting price estimates from many providers will help you find the most cost-effective option. You can get the best possible pricing from each provider by checking out their discounts in advance and taking advantage of as many as you can. 

Think about the more than a dozen rating variables, such as your age, gender, credit-based insurance score, vehicle type, motor vehicle record (MVR), auto claims history, make and model of vehicle, and ZIP code, that go into determining the cost of your car insurance in Louisiana.

#2. Keep Your Driving Record Clean

Insurance companies want to cover safe drivers, and a lack of traffic tickets and accidents tells them that they may rest easy. This can help you earn premium savings, such as safe driver rebates. Take a defensive driving course or enroll in a usage-based telematics program if there is negative information on your MVR; doing so may help you qualify for lower insurance premiums by demonstrating that you are a safe driver.

Best Cheap Car Insurance Louisiana

We found that Geico had the most cheap car insurance prices across the board in Louisiana. To fairly compare insurers and get a good feel for what it would cost the typical driver, we estimated the rates in this article using data from a sample of Louisiana drivers. The individual has a credit score of 680-719, is between the ages of 36 and 45, has never had any traffic violations or lapses in coverage, and has a vehicle worth between $20,000 and $30,000. 

Except where otherwise specified, all of our estimates are made on the assumption of minimum coverage. Because rates vary depending on factors like credit history, age, and driving record. Here are the top best cheap car insurance in Louisiana:

#1. Geico

Geico offers basic auto insurance for Louisiana drivers for $46.92 per month. Bodily injury liability and property damage liability are mandatory coverages offered by Geico, with other coverages such as medical payments, collision, comprehensive, and uninsured/underinsured motorist available as add-ons. Also, discounts from Geico can be earned through a variety of means, including membership in a certain group, completion of a specific course, continued business with Geico, and the installation of certain safety devices.

#2. USAA

Our sample Louisiana driver would pay as little as $73.95 a month for a basic policy with USAA. Our driver would need to be a USAA member (accessible to U.S. military personnel, as well as the wives and children of USAA members) in order to be covered by USAA’s auto insurance policy. 

USAA provides additional insurance options beyond the mandatory minimums required by most states. Discounts are available for enrolling in a reputable student program, setting up automatic payments, and bundling policies and automobiles with the same provider. In addition, there are choices for military personnel, such as affordable monthly payments and rebates for car storage on base.

#3. Southern Farm Bureau

Our sample Louisiana driver would pay roughly $79.19 monthly for a basic policy from Southern Farm Bureau. Southern Farm Bureau, based in Mississippi, provides insurance for cars, ATVs, motorcycles, travel trailers, and recreational vehicles (RVs) through independent agents. Customers who value convenience and technology may like Southern Farm Bureau’s mobile app since it provides quick and easy access to account details, claims reporting, agent contact information, and even emergency roadside help. Also, the Farm Bureau’s deduction rewards program is also available through the app.

#4. State Farm

State Farm, which has more than 19,000 agents in operation, could provide our Louisiana driver with basic insurance coverage for as little as $101.17 monthly through its network. Enhance your protection by picking from available add-ons like collision, comprehensive, liability, uninsured motorist, car rental, and travel expenses. Also, discounts can be obtained by combining numerous vehicles or policies, maintaining a clean driving record, taking a defensive driving course, being a good student, installing anti-theft devices, using passive restraints, and so on.

#5. Allstate

Finally, Allstate had a minimum-coverage policy that fit the bill for our Louisiana driver profile for about $108.31 per month. You can save money by installing safety features like anti-lock brakes and anti-theft alarms, by driving safely, and by making smart policy decisions like enrolling in payment systems, going paperless, signing up early, paying in full, and not canceling.

What Insurance Company Is Leaving Louisiana?

Heat waves are not unique to Texas, as Houstonians are well aware. Some states are having such severe weather that insurance firms are beginning to avoid providing coverage there because of the perceived “high climate risk.”

The coral reefs in Florida are in danger due to water temperatures in the mid-90s. However, additional extreme weather, such as the rain on the East Coast, is also occurring.

Nearly five inches of rain fell in 90 minutes throughout Pennsylvania on Saturday, resulting in at least five fatalities. A female family member drowned when their car was submerged. Her lost toddlers have not been found.

Now, experts are sounding the alarm about an impending insurance crisis that will lead to more than simply higher premiums. Increasing numbers of insurance companies are leaving states with a “high climate risk.”

The newest businesses to leave Florida are AAA and Farmers Insurance. Meanwhile, State Farm and Allstate have halted sales of home insurance in California.

Over the previous two years, at least 20 insurance providers have left the state of Louisiana.

Popular retirement destinations including Florida, Arizona, and Louisiana have recently become more expensive to relocate to due to increases in insurance premiums. “Families need to take some signal from the choices that these private insurers are making and realize that it is now going to be more expensive to live in risky areas,” says Benjamin Keys of the University of Pennsylvania’s Wharton School of Business.

Some in government are demanding action from the federal government to help homeowners.

What Is the Cheapest Time to Insure a Car?

The cost of car insurance can vary based on multiple factors such as your driving history, location, the type of car you drive, and the coverage you need. Generally, insurance premiums can be lower if you have a clean driving record, choose a car with a good safety rating, and opt for higher deductibles. Additionally, some people find that they can get lower rates if they renew or purchase insurance policies during certain times of the year, such as the end of the year or the beginning of a new policy term.

However, the specific cheapest time to insure a car can vary for each individual and is best determined by obtaining quotes from different insurance providers at different times and comparing the costs. It’s important to shop around and obtain quotes from multiple insurers to find the most affordable option tailored to your needs.

Which Type of Car Insurance Is Best?

When it comes to car insurance, Fully comprehensive car insurance is the best option. If you prioritize safety above all else or have a new or expensive car, this coverage may be suitable.

Fully comprehensive insurance typically covers: 

• Damage to someone else’s car or property
• Injury you cause to others
• Injury to your passengers in an accident
• Fire damage
• Accidental damage to your car
• Chipping/scratching

Once the excess has been paid.

Car insurance that is “comprehensive” may not always cover every eventuality. Features like rental car reimbursement, windshield replacement, and coverage for valuables like laptops and handbags are not standard and may not be included in your policy. These, however, should be available as optional additions. 

If the collision was your fault, you may not be compensated for any injuries you sustained. Extra coverage can usually be added to a policy for a fee if it isn’t already included.

What Are the Penalties for Driving Without a Car Insurance in Louisiana?

Driving without car insurance in Louisiana can get you a fine of $500 to $1,000, plus the suspension of your driving privileges, the impoundment of your vehicle, the revocation of your registration, and the cancellation of your license plates, as stated by the Louisiana Department of Insurance.

While these fines may be unpleasant, they likely pale in contrast to the financial damage you may endure if you were at fault in a car accident and didn’t have insurance.

The Louisiana Car Insurance Plan matches drivers with reliable insurers and is worth investigating if you’re having trouble finding an insurer in the state of Louisiana.

What Is Louisiana’s “No Pay, No Play” Law?

If you’re involved in a car accident in Louisiana and you don’t have liability insurance, you may be unable to recover all of the money you’re owed under the “No Pay, No Play” statute, even if the other motorist was at fault. The legislation (which can be found in Louisiana Rev. Stat. 32:866) states explicitly that those who are operating a motor vehicle without insurance at the time of an accident will not be entitled to recover:

• the first $25,000 in property damage resulting from the accident, and
• the first $15,000 in personal injuries caused by the accident.

It’s not always the case. Full reimbursement for damages sustained in an automobile collision can be obtained even if one driver does not have insurance if the other driver:

• was found guilty of DWI after an investigation into the crash
• recklessly brought about the collision
• run away from the scene of the crash, or
• criminal activity led to the accident.

Is Car Insurance Worth It in Louisiana?: Bottom Line

Yes, car insurance is worth it in Louisiana, as it’s mandatory by law. Having car insurance provides financial protection in case of accidents, helps cover medical expenses, and protects you from liability if you’re at fault. Driving without insurance in Louisiana can result in fines, license suspensions, and other penalties. It’s essential to have adequate coverage to ensure you’re protected on the road.

Cheap Car Insurance in Louisiana FAQs

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Reference

• marketwatch.com
• nerdwallet.com
• valuepenguin.com
• usnews.com
• bankrate.com
• creditkarma.com
• comparethemarket.com