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Best 4 Car Insurance Companies in Louisiana 2021
The 4 best cheap car insurance companies in Louisiana of 2021
Louisiana’s minimum coverage requirements for 2021
Louisiana law requires liability insurance that covers the medical expenses of one person up to $15,000, with a limit of $30,000 for everyone involved. Also, drivers are required to purchase insurance that covers other vehicles or property in the amount of $25,000. Many insurers refer to these limits as 15/30/25.
Louisiana average minimum coverage car insurance cost per carrier
|Insurance Company||Louisiana Minimum Avg. Cost||Louisiana Min Monthly Avg. Cost||Louisiana Min Weekly Avg. Cost||Louisiana Min Daily Avrg. Cost|
|Southern Farm Bureau||$919.00||$76.58||$19.15||$2.52|
Louisiana average full coverage car insurance cost per carrier
|Insurance Company||Louisiana Full Avg. Cost||Louisiana Full Monthly Avg. Cost||Louisiana Full Weekly Avg. Cost||Louisiana Full Daily Avrg. Cost|
|Southern Farm Bureau||$2,101.00||$175.08||$43.77||$5.76|
Is going with cheap car insurance the best option?
Many drivers want the cheapest coverage that they can buy. This is especially true in Louisiana because of how expensive insurance premiums tend to be. However, this might not be in your best interest. On average, drivers have an accident every 17.9 years, according to industry estimates. The average cost of permanently injuring someone in an accident is $93,800, according to the National Safety Council, and that’s for just one person. If more than one person incurs a disabling injury, costs dramatically increase.
Let’s say you purchase Louisiana’s minimum amount of insurance ($15,000/$30,000/$25,000) for $1,988 a year. If you increase your coverage to $100,000/$300,000/$50,000, you would pay $53 more a month, or a little over $600 more a year. That may seem like a big increase, but consider what you might owe if you were to get into a serious accident with only the minimum coverage. If there were multiple people injured, the cost could easily be in the $150,000 range. With your insurance provider only covering $30,000 of that, you could be sued for over $100,000. Had you invested the $10,800 extra in premium costs over the past 18 years, your costs would be completely covered. As you can see, it’s often wise to invest a little more money in liability insurance that covers more than the state-required minimum.
Additionally, collision and comprehensive insurance can be a good investment if you own an expensive vehicle. Uninsured and underinsured motorist coverage is also worth considering. In a state with expensive car insurance, many may choose to drive without the proper coverage. You wouldn’t want to get into an accident and find out the hard way that your insurance is woefully inadequate to cover damages.
Why you should shop for a new policy every few years
If you are a loyal customer, you hope that your loyalty is rewarded. Unfortunately, this may not always be the case. Many insurance companies aren’t just determining your premium based solely on common factors contributing to your overall risk level; many now use “price optimization” to slowly increase your rates. Insurers use fancy algorithms to analyze your personal data, including online shopping habits, the length of time you have been with your insurance company, and even your social media footprint. Those algorithms determine whether you are likely to simply pay an increase in your premium or if you are more likely to take your business elsewhere. This all boils down to insurers’ efforts to maximize profits at your expense without losing your business.
The best thing you can do to protect yourself from price optimization is to shop for a new policy every couple of years or whenever you start to notice gradual increases. This will let insurers know that you are serious about not overpaying, and they will do what they can to keep you as a customer.
Many states have taken steps to specifically address and ban price optimization. Unfortunately, Louisiana is not one of them, despite attempts from consumer organizations to bring attention to this issue. Earnix has estimated that over 45 percent of large companies use price optimization in determining customers’ rates. That’s why it’s so important that you protect yourself by shopping around.
As a driver in Louisiana, you want to take advantage of every discount you can in your search for better rates. While there are many factors that you can’t control, there are several things you can do to lower your premiums. Defensive driving courses are a great start, especially if you are a young driver. Enrolling in this type of course can sharpen your driving skills while earning you a policy discount at the same time. To qualify for a good driver discount, you can usually take advantage of programs from insurance companies that install a device to monitor your driving habits. Young drivers under the age of 25 can receive a student discount if they submit proof of good grades.
Even if you have bad credit, it is possible to find a better insurance rate. There are companies that specialize in offering policies to high-risk drivers, and their rates will often be better than options found elsewhere.
Our Car Insurance Rates
We used insurance rates from Quadrant Information Services. This includes analyzing thousands of rates from all 50 states that were publicly sourced from 2019 insurer filings. Rates are based on a 30-year-old male or female that had a clean driving record. Full Coverage premiums assumed a $500 collision and comprehensive deductible, and we looked at those who had both good and poor credit. These rates should be used to inform your car insurance shopping process, but your own quote may differ.