How to Find the Most Affordable Car Insurance in Louisiana

Fran
Lucy Lazarony
July 8, 2020

In Louisiana, the average auto insurance premium is an average of $2,225 per year, which is almost 56 percent higher than the national average. That is a high price to pay for auto insurance. Fortunately for the folks in Louisiana, there are tips and strategies that you can do that will lower auto insurance premiums. Before we jump to the money-saving tips let’s take a closer look at car insurance in Louisiana.

State Minimum Liability Requirements

If you ever cause a car crash, liability insurance pays for other people’s injuries and property damage, up to your liability limit. Each state has their own liability requirements for the drivers in their state.

In Louisiana, the state minimum liability requirements are $15,000 bodily injury liability coverage per person, $30,000 bodily injury liability coverage per accident and $25,000 property damage liability coverage per accident. This minimum liability coverage costs an average of $1,339 per year.

A Full Policy Costs More

Moving beyond a minimum liability policy costs more. A full policy with collision and comprehensive coverages and $1,000 deductibles would cost an average of $2,059 per year.

Collision insurance is coverage that helps to repair or replace your car if it’s damaged in an accident with another vehicle or object such as a fence or a tree. Comprehensive auto insurance covers events that aren’t covered by collision coverage. These events include fire, theft, vandalism and damages from weather such as a hailstorm, a windstorm, a hurricane and a tornado. If you have a loan on your car, your lender may require that carry both collision and comprehensive coverages for your vehicle. A deductible is the amount you need to pay before your auto insurance company begins to pay for damages to your car or losses. Choosing a high deductible will lower your auto insurance premium.

Louisiana Is an At-fault State

Louisiana is an at-fault state, which means drivers are responsible for any damage they cause to another vehicle. Who is at fault in an accident is determined by an insurance adjuster.

Why Is Auto Insurance so Expensive in Louisiana?

A high rate of uninsured drivers and a high rate of auto litigation push up car insurance rates in Louisiana. In 2018, state regulators also approved rate hikes for multiple insurers. Nationwide there has been a rise in accidents caused by distracted driving linked to smartphone use while driving. This has led to a rise in car insurance rates in Louisiana and elsewhere.

How to Save Money on Car Insurance

There are tips and strategies you can use to lower auto insurance premiums. Here is a roundup. Use as many as you can.

Get married. If you are married you will pay less for car insurance. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married drivers pay less for auto insurance than singles. In Louisiana, married drivers save $99 each year on car insurance.

Have good credit. If you have good or even excellent credit you will pay much less for your car insurance than someone with no or bad credit. Auto insurance companies have been using consumer credit data to assign risk pools and set rates since the mid-1990s. And there is a wide range of rates insurance companies assign based on a customer’s credit profile. In Louisiana, a driver with excellent credit saves around $2,030 per year on car insurance compared with a driver with bad credit. If you have bad credit, there are things you can do to improve it. Get current on all past due accounts, pay down debt and avoid taking on new debt. All these things will help to improve your credit score.

Be a safe driver. Being a safe driver that follows the rules of the road will help you to save money on your car insurance. Louisiana drivers without a recent at-fault accident save 31 percent on auto insurance premiums. But break some rules and your insurance premium will rise. In Louisiana, auto premiums increase 33 percent after a DUI, 31 percent after an at-fault accident and 17 percent after a speeding ticket. So obey the rules of the road and save money on your car insurance. Be sure to let your insurance company know that you’ve been a good driver and that you want the good driver discount. You’ve earned it.

Bundle your auto insurance. Bundle your auto insurance with other insurance policies such as a homeowners policy and save money.

Insure more than one car. Insure more than one car with the same insurance company. Doing so will save you money on your premiums.

Pay once or twice a year. Rather than paying monthly auto insurance bills, pay the entire annual amount or six-months amount. Your premium is lower when you pay just once or twice a year.

Have anti-theft and safety features. Having certain anti-theft and safety features on your car will save you money on your insurance premium. So check with your auto insurance company and find out if the anti-theft and safety features on your car are eligible for discounts.

Check memberships. Members of particular professional organizations and affiliates get discounts on car insurance. Reach out to your auto insurance company and find out if any of your memberships make you eligible for a discount on your car insurance.

Insure less for older cars. The maximum payout for collision coverage and comprehensive coverage is limited by the value of the car. So if your older car has a low market value, it may not make financial sense to carry collision and comprehensive coverages any longer.

Maintain your insurance coverage. You’ll pay higher insurance rates if you don’t maintain continuous coverage of your auto insurance. So stick with your auto insurance coverage and save money.

Choose a high deductible. As mentioned earlier, choosing a high deductible will save you money on your insurance premium. Just be sure to place the deductible amount in a small emergency fund. That way the money will be there if you should need to file an insurance claim.

Be older than 25 and younger than 65. Older and younger drivers get in more serious accidents and pay more for their auto insurance. Drivers in between those ages pay less.

Be a woman. Women make fewer accident claims than men and are rewarded with lower auto insurance rates. Men make more accident claims and pay more.

Be a low-mileage driver. Heavy commuters pay more for auto insurance because of all the miles they build up. Low-mileage drivers pay less for auto insurance. So drive less and pay less for auto insurance.

Choose a safe neighborhood. If you live in a neighborhood with high accident claims and auto theft you are going to pay more for your auto insurance. On the flipside, if you live in a neighborhood with low accident claims and low crime, you will pay less for your insurance. So choose a safe neighborhood and save money on your car insurance.

Buy a house. Statistics show that people who own homes drive more safely. So let your insurance company know that you own your own home and enjoy the savings on your auto insurance premium.

Shop around. The best way to save money on auto insurance is to shop around. You will want to check out several different insurance companies. SmartFinancial makes it easy to do. Just enter the type of insurance you are looking for and a zip code to get started. Answer a few, quick questions and you'll be comparing auto insurance rates in Louisiana in no time.

SmartFinancial has access to more than 200 insurance companies. So you are bound to find the insurance coverage and price that you want.

So shop smart for insurance and drive safely along the roadways of Louisiana.

Get a Free Auto Insurance Quote Online Now.

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