Cheap Auto Insurance in Louisiana for 2024 (Save Big With These 10 Companies!)

USAA, State Farm, and Geico are the top providers of cheap auto insurance in Louisiana, offering great rates and solid coverage.

USAA stands out as the cheapest auto insurance in Louisiana. Offering low rates and excellent service for military members and families.

State Farm is the second affordable option, with discounts for safe driving and bundling policies. GEICO provides savings for low-mileage drivers and military personnel.

Suppose you are living in New Orleans, Baton Rouge, Shreveport, Lafayette, or Lake Charles and looking for the cheapest auto insurance available in the area, these leading providers can help you find the best combination of savings and coverage.

Our Top 10 Company Picks: Cheap Auto Insurance in Louisiana

– Our Top 10 Company Picks: Cheap Auto Insurance in Louisiana

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#1 – USAA: Top Overall Pick

Pros

• Military Discounts: USAA is known for offering cheap military auto insurance and exclusive discounts for members, veterans, and their families.
• Low Rates: USAA has the cheapest auto insurance rate among other providers, starting at just $26 monthly for minimum coverage in Louisiana.
• Strong and Reliable: With an A++ rating from A.M. Best, USAA is considered a stable and dependable auto insurance provider in Louisiana.

Cons

• Limited to Military: USAA only qualifies military members, veterans, and their families for auto insurance, leaving other Louisiana residents out.
• Fewer Offices: USAA has fewer locations in Louisiana for in-person help, which may be inconvenient for some policyholders during auto insurance claims.

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#2 – State Farm: Cheapest Rates

Pros

• Affordable Rates: State Farm offers cheap auto insurance in Louisiana, with minimum coverage at $33 per month.
• Lots of Offices: State Farm has many locations in Louisiana, making it easy for customers to get help.
• Bundle Discounts: State Farm offers bundling discounts for Louisiana insurers who combine auto insurance with other policies, such as home or renters insurance. Learn more about State Farm’s discounts in our State Farm auto insurance review.

Cons

• Online Services: State Farm’s website and application lack some features for policyholders’ convenience compared to other cheap auto insurance providers in Louisiana.
• Higher Full Coverage Costs: Full coverage auto insurance premiums from State Farm can be more expensive in some areas of Louisiana.

#3 – Geico: Cheapest in Premium Coverage

Pros

• Low Premiums: Geico offers cheap auto insurance, with rates starting at $38 per month for minimum coverage. Refer to Geico auto insurance review for details.
• Easy to Use: Geico’s convenient website and application make it easy for insurers from Louisiana to manage their auto insurance policies and claims.
• Financially Secure: With an A++ rating from A.M. Best, Geico shows a strong and reliable auto insurance company profile in Louisiana.

Cons

• Fewer Local Agents: Geico has fewer in-person agents in Louisiana for those who prefer face-to-face consultations regarding cheap auto insurance.
• Limited Discounts: Geico offers some discounts, like bundling policies, but they are less generous than other auto insurance providers in Louisiana.

#4 – Travelers: Flexible Coverage

Pros

• Flexible Options: Travelers offers cheap auto insurance in Louisiana, starting at $42 per month for minimum coverage, with customizable policies.
• Extra Coverage: Travelers have auto insurance add-ons like accident forgiveness and gap insurance for more protection for residents of Louisiana.
• Financial Strength: Travelers is a strong and dependable auto insurance provider in Louisiana, given an A++ rating from A.M. Best.

Cons

• Expensive Full Coverage Costs: Full coverage auto insurance premiums from Travelers tend to cost more than some other cheap auto insurance options in Louisiana.
• Fewer Discounts: Travelers don’t offer as many discount options as some auto insurance provider competitors from Louisiana.

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#5 – Progressive: Snapshot Savings Expert

Pros

• Safe Driver Savings: Progressive’s snapshot program gives discounts based on good driving habits, making it a good option for cheap auto insurance in Louisiana.
• Competitive Rates: With minimum coverage at $43 per month, Progressive offers a cheap auto insurance choice for Louisiana drivers.
• User-Friendly Tools: Progressive’s website and application are easy to navigate for managing auto insurance policies and claims by insurers of Louisiana.

Cons

• Not for Everyone: The snapshot program’s discounts on auto insurance depend on driving behavior, which may not be applicable to everyone with a driving record history in Louisiana.
• Costs for Full Coverage: Progressive’s full coverage rates are higher than other cheap auto insurance options in Louisiana.

#6 – American Family Insurance: Best for Budget-Friendly Policies

Pros

• Budget-Friendly Policies: American Family offers cheap auto insurance, with a minimum monthly coverage of $47 for Louisiana residents.
• Custom Discounts: American Family provides personalized auto insurance discounts to fit various needs and helps customers from Louisiana to save more.
• Good Customer Service: Known for its helpful support, American Family is a reliable choice for cheap auto insurance for Louisiana drivers seeking assistance.

Cons

• Limited Availability: American Family offices are less widely available in Louisiana than other auto insurance providers.

#7 – Nationwide: Competitive Pricing

Pros

• Competitive Rates: Nationwide is known for providing competitive auto insurance rates in Louisiana with minimum coverage at $48 per month.
• Substantial Discounts: Nationwide shares several auto insurance discount options for Louisiana residents, including savings for bundling policies, resulting in cheap auto insurance policies.
• User-Friendly Tools: The Nationwide website and application provide a convenient method for Louisiana residents to manage their cheap auto insurance policies and file claims.

Cons

• Higher Premiums for Young Drivers: Auto insurance rates for younger drivers in Louisiana can be higher than those of other cheap auto insurance providers.
• Fewer In-Person Locations: Nationwide has limited office locations in Louisiana, which might be inconvenient for auto insurance policyholders.

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#8 – Allstate: Best for Safe Driving Incentives

Pros

• Safe Driving Rewards: Allstate is a strong contender for cheap auto insurance in Louisiana by providing incentives and discounts for drivers who follow safe driving practices.
• Convenient Coverage: With auto insurance rates at $55 per month for minimum coverage, Allstate provides Louisiana insurers a good balance between cost and value.
• Comprehensive Tools: The Allstate mobile app is highly rated in Louisiana for features like driving behavior tracking and easy auto insurance claims management.

Cons

• Higher Starting Rates: Allstate’s minimum coverage rates in auto insurance are higher than those of some competitors, which may not appeal to Louisiana drivers on a budget.
• Inconsistent Discounts: Some discounts from Allstate may vary depending on location, limiting savings for Louisiana drivers.

#9 – Farmers: Best for Customizable Plans

Pros

• Flexible Plans: Farmers offers customizable cheap auto insurance policies to meet the unique needs of Louisiana drivers, with rates starting at $57 per month for minimum coverage.
• Great for Bundling: Farmers provide substantial savings to Louisiana residents when they bundle auto insurance with other policies, such as home or life insurance.
• Reliable Support: Known for its excellent customer service, Farmers is a dependable choice for Louisiana auto insurance policyholders.

Cons

• Higher Base Rates: Farmers’ starting rates for minimum coverage are higher than many other cheap auto insurance options in Louisiana.
• Essential Online Tools: Farmers’ online services show outdated features compared to other cheap auto insurance providers in Louisiana.

#10 – Liberty Mutual: Best for Discount Opportunities

Pros

• Wide Discounts: Liberty Mutual offers various auto insurance discounts, making it possible for Louisiana residents to find cheap auto insurance, even with a higher base rate.
• Strong Coverage Options: Liberty Mutual offers customizable auto insurance policies that provide a range of coverage choices to fit the different needs of Louisiana residents.
• Trusted Insurer: Liberty Mutual has an A rating from A.M. Best, indicating strong financial stability and reliability in providing cheap auto insurance options to Louisiana policyholders.

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Auto Insurance Rates and Coverage in Louisiana

Louisiana drivers have various auto insurance options to suit their needs and budgets. Whether looking for the cheap auto insurance with minimum coverage or a comprehensive full coverage policy, the following data provides insights into the rates offered by auto insurance companies in Louisiana.

Louisiana Auto Insurance Monthly Rates by Provider & Coverage Level

– Louisiana Auto Insurance Monthly Rates by Provider & Coverage Level

USAA and State Farm are top picks in Louisiana for the cheapest auto insurance rates. Drivers wanting extra perks and flexibility can explore Progressive, Nationwide, or Travelers. Compare rates and coverage to find the best fit for your needs.

Minimum Auto Insurance Coverage in Louisiana

Louisiana law requires all drivers to maintain minimum auto insurance coverage to ensure financial protection in the event of an accident. This mandatory coverage is designed to help cover the costs of injuries and property damage resulting from accidents where the policyholder is at fault.

By requiring these minimum limits, the state aims to safeguard drivers and other road users from the significant financial burden of unexpected collisions.

Auto insurance coverage in Louisiana

The mandatory auto insurance coverage requirement of Louisiana for motorists is 15/30/25. This translates to $15,000 in bodily injury liability coverage per person, $30,000 per accident for bodily injury liability, and $25,000 in property damage liability. This ensures basic financial protection in the event of an at-fault accident.

These minimums provide basic protection but may not cover all expenses in severe accidents. Drivers are encouraged to consider higher auto insurance coverage limits or additional types of insurance for better financial security.

Auto Insurance Discount by Top Providers

In Louisiana, different auto insurance providers offer a range of discounts to help drivers save on premiums. Key discounts include Safe Driving Club, Anti-Theft, and Good Student discounts from Allstate; Multi-Policy, Safe Driver, and Defensive Driving discounts from American Family; and Safe Driver, Snapshot Program, and Homeowner discounts from Progressive.

Auto Insurance Discounts From the Top Providers in Louisiana

– Auto Insurance Discounts From the Top Providers in Louisiana

Discounts vary by provider, often including incentives for good driving habits, vehicle safety features, and bundling policies. To find the best deal, compare quotes and take advantage of the discounts that apply to your specific situation.

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Auto Insurance Premiums vs. Percentage of Income in Louisiana

Auto insurance costs make up a significant part of individuals’ income, affecting many Louisiana households. From 2012 to 2014, this trend stayed the same, even as incomes changed and premiums slightly increased. This shows the ongoing impact of auto insurance costs on household budgets.

According to data from the National Association of Insurance Commissioners, vehicle owners in Louisiana spend approximately 3.61 percent of their disposable income on auto insurance premiums.

The auto insurance cost-to-income ratio in Louisiana is among the highest in the United States. Thus, finding cheap auto insurance is important. Budgeting for this expense in advance will help manage other household costs.

Core Coverage of Auto Insurance Premiums in Louisiana

In Louisiana, understanding the core coverage options for auto insurance is essential for drivers to make informed policy decisions. Here’s a detailed look at the average annual premiums for different types of coverage:

In Louisiana, auto insurance includes Liability, Collision, Comprehensive, and Full Coverage. Liability covers injuries to others and property damage if you’re at fault, with a premium of $775.83 annually. Collision protects against vehicle damage from accidents, costing $414.36 per year.

Comprehensive covers damage from non-collision events like theft, with a premium of $215.17. Full Coverage combines all these options for the most extensive protection with a premium of $1,405.36 annually.

By understanding these coverage options, drivers in Louisiana can better choose the policy that meets their needs and budget.

Additional Liability Coverage of Auto Insurance in Louisiana

When selecting cheap auto insurance coverage in Louisiana, it’s important to go beyond basic liability options to ensure comprehensive protection. While we have already discussed the different types of coverage, additional options exist for increased security.

• Medical Payments (Med Pay) covers all your medical expenses regardless of who is at fault in an accident. It follows the policyholder, ensuring coverage whether you’re driving, a passenger, or even walking.
• Personal Injury Protection (PIP) covers medical expenses and compensates for lost income due to an injury, providing broader financial protection to insurers. PIP is beneficial if you depend on your income and have no other passive income source.

In Louisiana, many drivers opt for Medical Payments for its comprehensive coverage, but PIP can be more beneficial if you need additional income replacement. A cost comparison can help determine the best fit based on your needs when choosing between these options.

Considering the high loss ratios among insurers—driven by the prevalence of uninsured and underinsured motorists in the state—investing in uninsured/underinsured motorist coverage becomes crucial. This coverage helps protect against the financial risk of accidents involving drivers who do not have sufficient insurance.

Auto Insurance Add-ons and Endorsements Available in Louisiana

When dealing with auto insurance, the basic coverage may not always be enough to meet the needs of vehicle owners. Auto insurance providers offer a variety of add-ons and endorsements that can provide additional protection and benefits to customers from Louisiana. Here’s an overview of some of the most add-on options:

• Guaranteed Auto Protection (GAP): This coverage protects the client from financial loss if the vehicle is totaled or stolen.
• Personal Umbrella Policy (PUP): PUP provides extra liability coverage beyond your standard auto insurance policy. It’s beneficial for high-net-worth individuals or those who own multiple valuable assets.
• Rental Reimbursement: Customers can use this add-on to get temporary transportation while their cars are being repaired or replaced.
• Emergency Roadside Assistance: Provides support during road emergencies or vehicle breakdowns.
• Mechanical Breakdown Insurance: This covers repair costs for major vehicle components.
• Non-Owner Car Insurance: For people who drive a borrowed or rented car, this insurance protect the driver during accidents.
• Modified Car Insurance Coverage: This offers security for modified vehicles.
• Classic Car Insurance: Intended for individuals owning vintage or antique vehicles.
• Pay-As-You-Drive or Usage-Based Insurance: This option tracks driving patterns using telemetry technology, such as a gadget or smartphone app, monitoring variables such as speed, braking patterns, and mileage.

While these add-ons and endorsements offer extra protection, they can also raise the cost of your auto insurance policy. However, by choosing the right ones, drivers can better protect themselves from financial losses and potentially receive discounts for safe driving.

Factors Affecting Auto Insurance Policy in Louisiana

Auto insurance rates in Louisiana are influenced by several factors determining how much drivers pay for coverage. Auto insurance providers look at things like age, gender, credit scores, and your location. Other factors, such as driving history and the level of coverage you choose, also play a role. Understanding these factors can help drivers make smarter decisions and cheap auto insurance costs.

Gender

Gender is one-factor affecting auto insurance policies in Louisiana. Insurance rates vary significantly based on gender, particularly for young drivers. Men teenagers often face higher premiums due to lack of experience and statistically higher accident rates compared to young women.

In Louisiana, auto insurance rates are influenced by both gender and marital status. Younger male drivers typically face higher rates because of their lack of experience and higher accident rates compared to their female peers. Married drivers, regardless of gender, often get better rates as they are seen as more stable and responsible.

For those over 25, the difference between men’s and women’s rates tends to be lower, although factors like driving history and vehicle type can still cause variations.

ZIP Code

Auto insurance rates in Louisiana can vary significantly by ZIP code, considering risk factors such as location, demographics, and driving conditions of a city. Some cities are offered cheap auto insurance premiums due to safer driving environments, resulting in lower auto insurance claims.

For instance, in Hornbeck (ZIP code 71439), the average annual auto insurance premium is $4,332.48, with USAA providing the cheapest rate at $3,187.12. Conversely, New Orleans ZIP codes are among the most expensive, mainly due to higher accidents and crime rates. In these areas, auto insurance premiums can be more than double those in rural regions like Hornbeck.

Understanding the impact of ZIP code on auto insurance rates in Louisiana can help drivers find more affordable coverage options. By considering factors such as location, demographics, and driving conditions, drivers can better manage their auto insurance costs and choose policies that best suit their needs.

Coverage Level

Auto insurance premiums in Louisiana can vary greatly depending on your coverage level. Selecting a higher coverage level will generally mean higher premiums, but it provides more comprehensive protection if you get into an accident.

While it might be tempting to save money by opting for cheap auto insurance, this option can be a risky move. Shown below are the rates of the auto insurance providers according to coverage:

The increasing number of vehicle liability lawsuits indicates that the minimum coverage required by law in Louisiana may not be sufficient to completely cover property damage or medical costs associated with an accident.

Credit History

Credit history significantly impacts auto insurance premiums in Louisiana. Cheap auto insurance is less likely to be given to insurers with poor credit records. Companies typically charge much higher premiums for customers with missed payments or poor credit ratings. Insurers view individuals with poor credit as likely to file claims.

Adult single drivers with a poor credit rating in Louisiana can expect to pay an extra above the base premium rate. This shows the importance of maintaining good credit and potentially saving on auto insurance costs.

In Louisiana, the average credit score, based on Experian’s 2017 State of Credit Survey, was 650, below the national average of 675—credit scores in Louisiana rank among the lowest in the country. Since credit scores often influence auto insurance rates, drivers in Louisiana may face higher premiums than those in states with higher average scores. This highlights the importance of good credit to qualify for cheap auto insurance.

Driving Record

Driving record significantly affects qualification for cheap auto insurance. Being involved in accidents or getting tickets for speeding or reckless driving makes you less likely to get cheap auto insurance. The amount your premium increases depends on what happened and which auto insurance company you’re with. Some companies may charge more for accidents, while others may focus on serious violations like DUIs.

USAA offers the lowest rates for a clean driving record at $3,321.63, while Progressive is the highest. After an accident or DUI, rates increase significantly, with USAA and State Farm generally remaining more affordable. A clean driving record is the best way to keep insurance costs low.

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Auto Insurance Laws in Louisiana

In Louisiana, state laws set the framework for how auto insurance operates daily. These laws include key aspects such as the requirements for liability insurance, rate and form filing procedures, and financial responsibility laws.

• Tort Law and Liability Insurance Requirements: The tort system means that the one at fault in the accident will cover all damages. The state mandates a certain level of liability insurance, requiring all drivers to carry at least the minimum auto insurance coverage. This includes bodily injury and property damage liability to protect against legal claims.
• Rate and Form Filing: In Louisiana, insurance companies must file their rates and forms with the state insurance department for approval before it takes effect. If these filings are not denied within 45 days, they are automatically approved. This 45-day deemer provision is a unique feature of Louisiana’s insurance regulations.
• Financial Responsibility Laws: Drivers in Louisiana are mandated by this law to carry an auto liability policy with the required limits, certificate of self-insurance, deposited cash with the state treasurer, or posses an vehicle liability bond to drive legally. These laws ensure that drivers have the means to cover damages in case of an accident.
• Windshield Coverage Laws: This law prevents windshields from being obstructed by posters or signs to maintain clear visibility for safe driving.

Understanding these unique elements of Louisiana’s auto insurance laws can help drivers navigate the requirements and choose the right coverage to meet their needs.

Penalties for Driving Without Auto Insurance in Louisiana

In Louisiana, drivers must carry the state-mandated minimum liability coverage of auto insurance. Below are the penalties if violated:

• Fines: Drivers caught without auto insurance can face fines ranging from $500 to $1,000. Fines will be imposed if insurance cannot be provided or the policy lapses.
• Registration and License Penalties: Driving without insurance can revoke the vehicle’s registration or cancel the license plate, making it difficult to drive legally on Louisiana roads.
• License and Registration Revocation: Driver’s license and registration could be revoked for 180 days if you’re involved in an accident without auto insurance.
• No Pay, No Play Law: Louisiana’s “No Pay, No Play” law prevents uninsured drivers from collecting the first $15,000 in personal injury damages and the first $25,000 in property damages from an accident, regardless of who is at fault.
• Falsely Claiming Insurance: If you falsely claim to have insurance, your license could be revoked for 12 to 18 months.

A real-time monitoring system was introduced, allowing police officers to quickly check if a driver is adequately insured. This system aims to reduce the number of uninsured drivers on the road. Understanding these penalties is crucial for maintaining legal driving status and protecting yourself financially in Louisiana.

Auto Theft in Louisiana

Auto theft is a significant issue in Louisiana, affecting residents and state visitors. The frequency of auto thefts in Louisiana is notably higher than the national average, making it an important concern for drivers and law enforcement.

The table below shows that older pickup trucks, particularly Chevrolet and Ford models from 2006, are frequently targeted. Other targets include the Toyota Camry, Honda Accord, and Dodge Pickup from 2003.

This concentration of thefts suggests that thieves are drawn to vehicles with higher resale value and demand. Residents should take extra precautions, like installing anti-theft devices, parking in secure locations, and always locking doors to protect their vehicles from theft.

Road Fatalities in Louisiana

Road fatalities in Louisiana have been a significant concern that affects not only lives but also auto insurance rates and policies, with one of the highest rates of traffic-related fatalities in the United States. Busy highways, high-speed roads, and poor driving habits contribute to the risk of accidents and fatalities on Louisiana’s roads.

The high number of road-related fatalities in the state can lead to increased premiums as insurers adjust their rates to cover the risk. Understanding how these fatalities influence auto insurance can help drivers in Louisiana make informed decisions about their coverage.

Case Studies: Navigating Cheap Auto Insurance in Louisiana

Finding cheap auto insurance in Louisiana can be daunting due to the state’s high premiums and unique driving challenges. These case studies explore real-life scenarios of individuals who successfully secured cheap auto insurance while addressing their distinct needs.

• Case Study #1 – Jake, New Driver Saved Money: Jake, a teenager from Baton Rouge, had high auto insurance rates as a first-time driver in Louisiana. By comparing quotes online, choosing a higher deductible, and taking a driver safety class, he lowered his auto insurance premium by almost 30%.
• Case Study #2 – The Browns, Affordable Coverage for a Family: The Browns, a family from New Orleans, needed auto insurance for their two cars but didn’t want to break the bank. They bundled their auto and home insurance with the same company and added a pay-as-you-drive policy for their second car. These changes helped them cut their monthly bills while keeping good auto insurance coverage.
• Case Study #3 – Lisa, Lowering Costs for a Risky Driver: Lisa, a driver from Shreveport with a few issued traffic tickets, had trouble finding cheap auto insurance. She worked with an insurance agent to find companies that specialize in helping drivers like her. By improving her credit score and driving safely for a few months, she qualified for better rates.

These case studies prove that finding cheap auto insurance in Louisiana is possible. With smart choices like shopping around, bundling policies, and improving driving habits, anyone can save money and avail of cheap auto insurance while staying protected.

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