Automobile Insurance in Louisiana
Louisiana has the second-highest car insurance rates in the country. However, that doesn’t mean you must pay through the nose for coverage. Many automobile insurance Louisiana providers offer dependable car insurance at good rates — and you can count on us to tell you all about them.
To help you pay the lowest possible rate for auto insurance, we grabbed quotes from a number of players, both national and regional. We also checked how each one of them performs on other important parameters, including customer service, financial stability, and online tools.
Continue reading to find your perfect auto insurer in the Pelican State.
The Best Car Insurance in Louisiana
- Progressive — The Overall Winner
- GEICO — The Best for Financial Health
- Allstate — The Best for Optional Coverages
- Liberty Mutual — The Best for Car Repair Insurance
- USAA — The Best for Military
The Overall Winner: Progressive
When it comes to offering low-cost car insurance in the Pelican State, Progressive makes others look like amateurs. At $182 a month, it is the cheapest Louisiana auto insurance company by a few country miles.
Progressive also shines in the financial health department, earning the second-highest possible rating of “A+” from A.M. Best. In other words, you can count on it to not hide behind legal loopholes or excuses when the time comes to pay out your claims.
The insurer also makes a mark with innovative features such as Name Your Price and Progressive Snapshot. The former is a unique feature offered by no other automobile insurance Louisiana company and makes it super easy to build a policy around your budget. Simply feed in the price you would like to pay and the tool will show the coverages available at that rate. Progressive Snapshot, on the other hand, uses on-board diagnostics to track how you drive. If it finds your driving to its liking, Progressive will reward you by reducing your premium.
All in all, if you want dirt-cheap auto insurance or unique features, strongly consider contacting the insurer for car insurance quotes. Louisiana drivers who want top-notch experience, however, may want to look elsewhere, since the insurer could only manage two stars in J.D. Power regional study.
Consider Progressive if you want the best bang for your buck.
Look elsewhere if you want top-shelf service.
Best for Financial Strength: GEICO
GEICO is one of the big boys of the US auto insurance industry. But if you are a Louisiana driver the only question that matters is, how does it measure up to the competition in your backyard?
Pretty well, indeed.
If you’re looking for cheap car insurance in New Orleans or in other cities in Louisiana, GEICO is certainly a name worth remembering. While not the most affordable, GEICO’s rates are quite reasonable. However, its online tools and financial health departments that the insurer really shines.
GEICO’s mobile app is as good as they come, as reflected by its rating of 4.8 (out of 5) in both Google Play and the App Store. Besides allowing you to do all the regular stuff — get roadside assistance, file a claim, modify coverage, etc. — the app lets you hunt the most-affordable gas station or even chat with a company’s representative on the go.
Its website, sleek and user-friendly, is also second to none and makes getting an LA insurance quote or finding information related to car insurance as easy as one-two-three. Financially, GEICO is in the pink of health, earning the highest possible rating of “A++” from A.M. Best. Given its superior financial rating and well-established name, you can rest easy knowing your safety net is secure with GEICO, whether you file a claim next week or several years down the line.
To sum it up, if you want a financially-secure insurer that offers relatively cheap insurance in Louisiana that’s easy to manage on-the-go, GEICO may just be the one for you. However, keep in mind its customer service ratings are just average. If that’s a concern, consider State Farm. Consider GEICO for its reasonably pocket-friendly rates and superior online tools.
Look elsewhere if you want dirt-cheap rates or the best customer service.
Best for Optional Coverages: Allstate
Even though Allstate premiums are higher than the state’s average, certain drivers should consider contacting it for car insurance quotes. Louisiana drivers who are looking for not-so-common add-ons, such as classic car insurance, may find Allstate to their liking.
The same goes for consumers who place a high value on financial strength. A.M. Best awards Allstate an “A+” rating, which indicates a strong ability to pay out claims.
However, its record in the customer service department is not up to the mark, just like Liberty Mutual and Progressive — two top auto insurance companies in Louisiana. Allstate came second last in the J.D. Power regional study, with just two stars out of five.
So with Allstate, it all boils down to one thing: how willing are you to make a tradeoff in customer service for unique add-ons? Choose Allstate for its unmatched selection of optional coverages.
Look elsewhere if you want low premiums or top-notch service.
Best for Car Repair Insurance: Liberty Mutual
Liberty Mutual is the sixth-largest US auto insurer based on direct premiums written. But should you keep it on your radar if you are looking for car insurance in Louisiana?
It depends on whether you want the one or more unique coverage options offered by the insurer.
Liberty Mutual, like Allstate, is a little on the expensive side. What’s more, its customer service ratings for the Louisiana region couldn’t be worse. It earned the last spot in 2019’s J.D. Power study. Nevertheless, Liberty Mutual has a few aces up its sleeve that might appeal to certain users.
For instance, unlike most insurance companies in Louisiana, it offers a new/better car replacement coverage. With this add-on, the insurer will replace your totaled vehicle with a car one year newer and 15,000 miles fewer on it.
Another unique add-on is the Liberty Mutual deductible fund, which allows consumers to save money towards their deductible. If you add it to your policy, the carrier will also contribute to your deductible. Liberty Mutual also offers a Lifetime repair guarantee, which takes the stress out of getting your car repaired after an accident. The company takes care of that and also offers a lifetime guarantee on repair work, as long as you are the owner of the damaged vehicle.
Liberty Mutual, like most other Louisiana car insurance providers in our list, does pretty well in the financial strength department. It got an impressive “A+” rating from A.M. Best, so you can trust the insurer to keep its end of the bargain when you make a claim.
To sum it up, Liberty Mutual is a good option for drivers who want its unique add-ons. However, others are likely to be better off considering other names in the list, such as Progressive or GEICO. Choose Liberty Mutual for new/better car replacement coverage and other unique add-ons.
Look elsewhere if you want budget-friendly automobile insurance in Louisiana or excellent service.
Best for Military: USAA
USAA enjoys the second-highest customer service ratings in J.D. Power regional study and offers dependable car insurance at competitive rates. On top of that, its financial strength ratings are unsurpassed. A.M. Best gave it an “A++,” the highest rating awarded by the rating agency.
However, the insurer caters specifically to US Military personnel and their loved ones; it offers everything you might want from your car insurer — low-cost coverage, top-class service, and excellent financial strength. Choose USAA for its great performance across the board.
Look elsewhere if you are not eligible.
Cheapest Car Insurance in Louisiana (By City)
We grabbed quotes from different players to find out how they measure up in five major cities of Louisiana. Our quote included full coverage limits and our sample policyholder was a 40-year-old male with a pristine driving record.
Located along the gorgeous banks of the powerhouse Mississippi River, New Orleans is the most populous city in the Bayou State. New Orleans is famous for its distinctive French culture and French architecture, as well as music, food, and multicultural events, such as the Mardi Gras festival.
Auto insurance is costlier in New Orleans, compared to any other city in the Pelican State. All the same, several providers offer cheap car insurance in New Orleans, and you would do well to pick one of them.
Best for 21-year-olds
Generally speaking, younger drivers get the short end of the stick. Insurers see them as high-risk and ask them to fork out more for coverage. Compared to experienced drivers, they pay roughly 30% more. That said, Progressive offers them a good deal, so does GEICO to some extent.
Best for 40-year-olds
Experienced drivers looking for an attractive bargain on auto insurance in New Orleans should start their search with Progressive. However, its customer service leaves a lot to be desired. If customer service is a top priority, go with State Farm. On the other hand, if you want an insurer with the best financial strength ratings, GEICO might be right up your alley.
Best for 70-year-olds
Progressive offers the best rate to senior drivers, with its average premium being almost 41% lower than its nearest competitor — Louisiana Farm Bureau. Allstate, while considerably more expensive than these two, might be a good option for drivers that want unique add-ons, such as classic car insurance. State Farm is another good option for this age group, especially if you are eligible for its various discount programs. GEICO, on the other hand, shines in the financial strength department, though it’s not the most affordable or customer-oriented insurance company in Louisiana.
Baton Rouge, located along the great Mississippi River, is the capital and the second-most populous city of the US state of Louisiana. Known for its strategic location, Baton Rouge is an important industrial, petrochemical, and medical research center of the American South. Baton Rouge emerges as the third-most costliest city for auto insurance in the Bayou State. Much like elsewhere in the state, Progressive offers the lowest rates on car insurance in Baton Rouge. However, if quality service is your top priority, State Farm might be more suited for you. Other viable options include GEICO, Farm Bureau, and Liberty Mutual.
Shreveport is the third-most populous city of Louisiana and a major cultural, educational, and commercial center of the Ark-La-Tex region — that is, the region where Arkansas, Louisiana, and Texas meet. It is home to several top-quality educational institutes, such as Centenary College of Louisiana, Southern University at Shreveport, and Louisiana State University Shreveport. Looking for cheap auto insurance in Shreveport, Louisiana? Shreveport, on average, has the lowest car insurance rates in the state, but you can sweeten the deal further by aligning with Progressive. Other noteworthy options include GEICO, Allstate, and State Farm.
Situated on the south shore of Lake Pontchartrain and bordered by New Orleans to the east, Metairie is the biggest community in Jefferson Parish. The city is known for its festivals, such as Family Gras, the Bucktown Seafood Festival, and the Old Metairie Irish Festival. It also offers a range of fine dining venues and family-friendly attractions. Those looking for the most affordable auto insurance quotes in Metairie, Louisiana should start their search with Progressive. At roughly $207 a month, Progressive’s rates are nearly 37% lower than the average rate in Metairie, the second-most expensive city for car insurance in the Creole State. However, if you value customer service more, consider State Farm. Other names worth checking out are GEICO and Allstate.
Situated on the gorgeous banks of the Vermilion River, Lafayette is the fourth-largest city in the Creole State. It is known for many festivals like Mardi Gras, the New Orleans Jazz & Heritage Festival, Essence Music Festival, and Bayou Country Festival. When it comes to providing low-cost auto insurance in Lafayette, LA, Progressive and Farm Bureau are head and shoulders above the rest. On the other hand, GEICO might be a suitable option for all those who place a high value on financial strength ratings, and Allstate for drivers who want a special kind of coverage — like classic car insurance. The other two names worth considering are State Farm and Liberty Mutual.
Louisiana Automobile Insurance Laws
Louisiana Automobile Insurance Plan (LA AIP)
Car insurance is mandatory in Louisiana, but not every driver gets coverage from the voluntary market; it’s not uncommon for insurers to turn down high-risk drivers. However, all is not lost. Such drivers can turn to the LA AIP for help. Created in 1972, LA AIP has two important functions:
1. To ensure all eligible drivers have access to the state’s bare minimum coverage.
2. To ensure all insurance companies in Louisiana bear their share of responsibility of insuring high-risk drivers.
LA AIP will randomly assign you a carrier for three years, provided you can prove that you tried to buy coverage the normal way in the past 60 days, but to no avail. Mind you, this help comes at a cost. Coverage bought with the help of LA AIP is more expensive than standard insurance. So dial LA AIP for help only after you’ve exhausted all your options.
Louisiana Minimum Auto Insurance Coverage
All vehicles registered in Louisiana require the following bare minimum auto insurance coverage:
- Bodily Injury Liability — $15,000 per person/$30,000 per accident. If you’re involved in an at-fault accident where others suffer injuries, this coverage will pay for their medical expenses.
- Property Damage Liability — $25,000 per accident. This type of coverage provides compensation for damages you cause to someone else’s car or property in an at-fault car accident.
SR22 Auto Insurance in Louisiana
A major alcohol violation conviction, or driving without insurance, may make SR22 a necessity. SR22 is a form that your insurer must file with the local DMV to prove to the state that you are carrying the bare minimum auto insurance coverage. The SR22 form lets you continue driving legally on the road or get back on the road if your license was suspended.
If you have existing coverage, your auto insurance Louisiana provider may be able to file SR22. If it refuses or you’re uninsured, you’ll have to purchase a new policy, and therein lies the rub. While filing an SR22 is cheap — fees could be as low as $15 to $25 — insurance with an SR22 requirement tends to be considerably costly because carriers rate such drivers as high-risk.
The good part, however, is not all auto insurance companies in Louisiana penalize state’s troubled drivers equally, so shop around if you want the best bang for your buck. Also, you’ll not pay a penalty for your misdemeanor forever. Don’t violate traffic rules and pay your premiums on time, and you could well be paying the standard rate in just three years’ time.
Price Optimization in Louisiana
There’s more to your car insurance premium than just risk. Your auto insurance Louisiana provider may also be factoring in your social media history and online shopping behaviors.
Why? Glad you asked.
To find out how you are most likely to behave. If they think you are the type who doesn’t like switching companies, they will try to quote you a higher premium to maximize their profits.
In short, staying blindly loyal to your Louisiana car insurance company is not a good thing since the state’s auto insurance laws allow carriers to put the screw on loyal customers. Several states in the US have come hard on this seemingly unfair practice, which goes by the name of Price Optimization, but The Pelican State is not one of them.
All the same, you can stop your insurer from taking you for a ride. Simply shop around a little before your policy is up for renewal to send a message that you know their game.
Louisiana Auto Insurance for New Residents
New residents must register their vehicles within 30 days of moving to The Pelican State. You’ll need to contact the nearby Louisiana Office of Motor Vehicle and bring along your current driver’s license, proof of state’s bare minimum car insurance, and a completed vehicle application, among other things.
Louisiana No-Fault Laws
Louisiana, much like the majority of US states, follow the at-fault system of auto insurance. In other words, each automobile insurance Louisiana provider pays for the damages inflicted on others by their drivers.
In an at-fault system, every driver must assume responsibility for their mistakes. In the event of an at-fault accident, your carrier will indemnify you by paying up the other party, up to your policy limit.
The other party can file a suit against you if they don’t agree with the payout amount or want compensation for non-economic damages, such as pain, anxiety, or suffering, or uncompensated economic damages, such as lost wages.
Generally speaking, the average cost of car insurance is lower in at-fault states, compared to “fault states,” such as Michigan.
How to Get The Best Auto Insurance in Louisiana
Check Auto Insurance Reviews
For many of us, auto insurance boils down to price. All the same, factors such as financial stability ratings and customer service ratings are important as well. After all, you wouldn’t want a carrier that goes bust when you’re in the middle of a claim or add to your worries when you’re involved in an accident.
So how can you glean key information about top automobile insurance Louisiana providers?
Well, this guide is a good starting point. It tells everything you need to know about the best players in the state. But in case you want to include more names in your shortlist, check out our car insurance rankings. We studied two dozen carriers and ranked them according to their performance on seven important factors: affordability, customer experience, online tools, financial stability, coverage options, discounts, and availability.
Compare Auto Insurance Quotes in Louisiana
Comparing car insurance quotes is nobody’s idea of fun, but it can save you up to $100 a month, or perhaps even more.
While all carriers use similar factors, each has its “secret formula” to set rates. For this reason, premium rates can vary wildly from one insurer to the next for the same level of coverage for the same driver. If you don’t want to pay more than you have to, grab quotes from multiple providers and compare them.
Determine Who Provides the Best Louisiana Discount
If you’re getting a quote from an agent, don’t forget to ask for all discounts to which you’re eligible. Auto insurance discounts can bring your rates down considerably, so the more you tack on, the better.
Frequently Asked Questions
1. Is Louisiana a no-fault state?
No, it is not a no-fault state. Louisiana, like California and Wyoming, follows an at-fault system for assigning responsibility in the event of a car accident. Simply speaking, in such a system, each insurer pays for the mistakes made by their drivers, up to their policy limits.
2. How much does car insurance cost in Louisiana?
The average Louisiana auto insurance rate is $311 a month, according to our Carsurance analysis of rates. Our quote was for a 40-year-old driver having a clean record and included full coverage limits. You’re likely to cough up less if you’re of similar age but don’t require full coverage. On the other hand, if you are a new driver, expect a higher premium rate. The same holds true for students and high-risk drivers.
3. What is full coverage auto insurance in Louisiana?
To legally operate a car in the Pelican State, you must carry bodily injury liability coverage ($15,000 per person/$30,000 per accident) and property damage liability coverage ($25,000 per accident). However, the state’s minimum auto insurance doesn’t cover damages to your own car. If you want added protection, consider full coverage. It typically includes collision and comprehensive coverage, besides the mandatory bodily liability and property damage liability coverage.
4. What happens if you drive without insurance in Louisiana?
It is illegal to drive without the state’s mandatory auto insurance in Louisiana. First-time offenders will have to pay a fine of at least $100. If you’re caught the second time, you’ll be staring at a minimum fine of $250, while further offenses can set you back by up to $700. Also, the state may impound your vehicle, suspend your driving privileges, cancel the license plates, or revoke your vehicle registration.
5. Who has the most affordable auto insurance in Louisiana?
If you’re looking for the most affordable automobile insurance Louisiana money can buy, look no further than Progressive. Its rates are considerably lower than other pocket-friendly insurers, such as GEICO and Farm Bureau.