Auto Insurance in Louisiana: What You Should Know

Auto Insurance in Louisiana is mandatory by law within the state. Each person must have a minimum of $15,000 in Personal Injury Protection and $10,000 in Property Damage Liability. Although it is not required to carry Uninsured Motorist Coverage in Louisiana, it is highly recommended that you consider carrying this coverage if you already have health insurance or Medicare.

Auto Insurance in Louisiana

A driver’s license is required for anyone who drives a motor vehicle on public streets or highways within the state. You must be at least 16 years old to apply for your restricted driver’s license and 17 years old to apply for an unrestricted driver’s license.

Cheapest Car Insurance in Louisiana

To find the cheapest car insurance in Louisiana, you must compare quotes from several companies. If your car is 16 years old or less, it will not be eligible for discounts, so only premium rates are quoted. If your vehicle is over 16 years old, you may be eligible for a discount.

Best Car Insurance Companies

The three best car insurance companies in Louisiana are Progressive, Allstate and State Farm. The above-mentioned companies provide low down payments, unlimited lifetime maximum coverage, 24-hour customer service (800 numbers) and no credit check requirements for applicants.

Compare Louisiana Quotes Online

You can compare quotes from different auto insurance companies by entering your zip code on our home page and then clicking on the “Get Your Free Quote Now” button to begin. While you will get instant quotes from each company, it is always best to shop around for the best deal available before making your decision.

Average Cost of Car Insurance

The average cost of car insurance in Louisiana is $792 annually and has gone up 8% over the past three years. Although this number is up from previous years, it is still significantly lower than any other US state.

Drivers With a DUI in Louisiana

If you receive your first DUI, the insurance costs will double, with fines and jail time. The penalties for a second or third offence are much steeper and can include higher insurance rates for up to 15 years after the conviction.

Drivers With Tickets in Louisiana

Moving (20 MPH+) and non-moving violations can increase premiums with one ticket potentially affecting your rates for 3 years after the conviction. Receiving two or more tickets can affect your rates even longer, resulting in a permanent increase.

Drivers With Bad Credit in Louisiana

You should not have to pay more for insurance premiums if you have bad credit or a history of accident claims, but unfortunately, it does happen because insurers will view drivers with multiple accidents as high risk. If you experience this problem, purchasing your policy from a direct writer rather than a broker is one option. Unlike brokers who may refuse to quote you a policy with multiple claims, direct writers do not use credit scoring when determining rates.

Seniors in Louisiana

The state of Louisiana offers special discounts for drivers 55 years old or older. Drivers must have a clean driving record and a maximum of three traffic violations within the previous three years to qualify for the discount. This is one of many discounts that are available in addition to accident forgiveness, multiple policies, and being a good student.

Military Drivers in Louisiana

If you are an active duty member in the military, your insurance premiums will be significantly reduced compared to civilians because you are eligible for both Safe Driver (for drivers with no accidents or tickets) and Preferred Driver (for drivers with accidents or violations). In order to qualify for the discount, you must present your active duty orders.

Car Insurance in Louisiana

In general, car insurance is required by all drivers who own a registered vehicle in the state of Louisiana, but this does not mean that you have to obtain quotes from each company on the market. It is best to discuss your options with agents at different companies before you make your decision, but you only need to make sure that the company provides sufficient coverage for your vehicle(s).

Who is the best car insurance company?

The three best car insurance companies in Louisiana are Progressive, State Farm and Allstate. They all provide low down payments, unlimited lifetime maximum coverage, 24-hour customer service (800 numbers) and have no credit check requirements for applicants.

What is the cheapest car insurance company?

Geico, Progressive and The General are Louisiana’s three cheapest auto insurance companies. They all offer low down payments, unlimited lifetime maximum coverage, and easy payment plans (monthly or bi-weekly) with no credit check required to qualify.

What are the requirements to obtain car insurance?

Although there are no official requirements for owning a vehicle, you will need to obtain coverage if your state requires it. The three factors that affect what you pay (besides driving history) are age, gender and marital status. An additional factor called the territory means the rate you pay can be determined by ZIP code.

How does the territory factor affect rates?

If you live in certain zip codes, your rate can be increased or decreased. The state uses this rather than credit scores to determine whether or not drivers are high-risk and should be charged more for coverage (average increase of $17 per year).

How does age affect rates?

Age is one of the most important factors insurance companies use to determine premiums. The older you are, the more risk you represent and thus the higher premium that must be charged for coverage (average increase of $24 per year). Drivers under the age of 25 are considered high risk because they are inexperienced drivers.

Conclusion

As you can see, Louisiana is a state that has specific requirements for auto insurance. Before the new year arrives and your previous policy expires, review these guidelines so you are fully aware of what’s required by law to drive on public streets or highways within the state legally. If any questions arise while reading this guide about how your current coverage may stack up against our list of mandates set forth by the State Department of Insurance (LDI), feel free to reach out! We’re always here to help answer all those burning questions as we usher in a new year.

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