The Best Louisiana Auto Insurance Company
Louisiana has the highest rates for auto insurance in the country — on average $1,405 per year, compared to the nationwide average of $1,009. That said, how much you’ll pay can vary a lot depending on your car, your coverage, and your address. Use our tool to find your best rates:
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Louisiana is caught in a vicious cycle. Its auto insurance rates are the highest in the nation at nearly $300 above the national average. As a result, many of its drivers can’t afford insurance or can only afford the state minimum. So, when accidents happen, drivers often can’t afford to pay, or they end up in court. All of this means greater expense to insurance companies, which leads them to increase rates, putting an even greater strain on drivers.
While it’s difficult to find an affordable auto insurance policy in Louisiana, it isn’t impossible. You just have to shop around. Decide what level of coverage you need and compare quotes from several companies to find out which offers you the best value. You can start by reading our reviews of the top five auto insurance companies in Louisiana and then using our quote tool to see what they can offer you.
Louisiana Minimum Liability
By law, all drivers are required to carry liability insurance, but the exact amount varies by state. In Louisiana, you must have at least:
- $15,000 bodily injury coverage per person
- $30,000 bodily injury coverage per accident
- $25,000 property damage coverage per accident
You’ll often see this abbreviated as 15/30/25 coverage. This is particularly low compared to the rest of the nation; most other states require at least 25/50/25.
Our recommendation: Buy as much coverage as you can comfortably afford.
Many drivers in Louisiana only carry the state minimum coverage, and while this might tempt you given the cost of premiums, it could end up costing more in the long run. The state minimums aren’t nearly enough to cover a worst-case scenario.
If you find yourself responsible for another driver’s $50,000 in medical bills, your insurance company will only help you out with the first $15,000. That leaves you to pay the remaining $35,000 on your own.
The better way to save on your auto insurance? Shop around. Each insurer has their own formula for calculating premiums. And while they all look at the same factors — including your vehicle, location, and driving record — every company weighs these factors differently. Once you know your options, choose the company that offers you the best deal on the highest level of coverage.
How We Found the Best Auto Insurance in Louisiana
We used a methodology similar to the one in our national auto insurance review. First, we investigated which were the top insurers in the state by market share — we wanted to compare the biggest players in the space.
Then, we checked with rating agencies like A.M. Best, Moody’s and Standard & Poor’s to ensure that they were all financially sound. These agencies rate companies on their “financial solvency” — the likelihood that they can pay out their customer’s claims.
From there, it came down to what the companies had to offer. We evaluated each of them based on their coverage limits, endorsements, discounts and customer satisfaction ratings according to J.D. Power and Consumer Reports in order to determine which provided the most coverage and best service for the most reasonable price. We also picked up the phone to speak to local agents and tried out the quote process for ourselves.
Remember: auto insurance premiums vary a lot depending on you, your driving history, and your car. That’s why it’s so important to compare quotes from multiple providers.
Louisiana Auto Insurance Reviews
GEICO gave us our second-most affordable quote, though it was still $67 more than Progressive. You may be able to reduce that difference, however, if you take advantage of its many discounts. Save by being a safe driver, having safety devices on your vehicle, or being a federal employee or military member.
You can also adjust your rates by choosing a higher deductible. Options range from $50 to $2,500, and going with a higher amount will lower your premiums significantly. If you don’t want to deal with any out-of-pocket costs in the event of a claim, you can also choose a “no deductible” option (though this raises your monthly premium significantly).
With GEICO, the most per-accident coverage you can purchase is $300,000 — the lowest of any company on this list. But GEICO also enables you to buy $300,000 of per-person coverage, making it second only to State Farm in this category.
In addition to the required liability coverage and standard options like collision, comprehensive and uninsured/underinsured motorist coverage, GEICO also offers the ever-rare mechanical breakdown coverage. This pays for repairs not related to an auto accident, and it could come in very useful in a state known for high auto repair costs.
GEICO outdoes all the rest in terms of customer service, too. It received an 89 overall score from Consumer Reports, and both J.D. Power and Consumer Reports gave it an above-average rating for its claims handling, including the simplicity of the process and timeliness and amount of the payment.
In a state where accidents are so common, it’s important to make sure the company you choose isn’t going to create any extra headaches for you when the time comes to file a claim. This isn’t a concern with GEICO.
State Farm is your best choice if you’re interested in purchasing high liability coverage limits. It’s the only company on this list that enables you to purchase up to 500/500/500, which should be enough to cover even the most serious accidents. The tradeoff for this is, of course, a higher price.
Even so, you can counteract that price hike by taking advantage of discounts, including its Drive Safe & Save and Steer Clear programs. The Drive Safe & Save program monitors your driving for several months, and if you do well, you could earn big savings. Its Steer Clear program is a training course only available to drivers under 25.
You can also choose a higher deductible, and in some cases, you may not have a choice. The minimum collision deductible is $250, which is high considering that companies like GEICO and Liberty Mutual only require a minimum $50 deductible. For most people, this won’t be an issue, but if you want to minimize your expenses in the event of a claim, one of the other companies may be a better fit.
State Farm covers all the bases, including collision, comprehensive and uninsured/underinsured motorist coverage. These are not required by state law, but they’re critical in a state that’s known for a high percentage of accidents and uninsured motorists.
State Farm is also one of the only companies on the list to offer ridesharing coverage to Uber and Lyft drivers, so you should definitely get a quote from here if you plan on working for one of these companies.
State Farm did well in both J.D. Power and Consumer Reports’ surveys, though J.D. Power rated it slightly behind GEICO in terms of claims handling. Still, you shouldn’t have to worry about any problems when the time comes to file a claim.
Progressive gave us what was far and away our most affordable quote at $211 per month, and it is known for its low prices, making it one of the first stops for those in the hunt for affordable auto insurance. But its deductible options are limited compared to its competitors.
Companies like GEICO and Allstate enable customers to choose a deductible as low as $50 and to waive their comprehensive deductible altogether if they’d like. Progressive’s lowest deductible is $100.
Progressive is also the only company on this list that doesn’t offer accident forgiveness, so there’s no way to protect yourself against rate hikes if you have an accident. If this concerns you, you may want to go with a company like GEICO that provides this coverage while still keeping rates affordable.
However, it’s worth taking a closer look at Progressive if you’re interested in certain rare endorsements like GAP coverage. This pays the balance of your lease or loan if your vehicle is totaled in an accident. Progressive is the only company on this list that offers it.
It’s also the only company that offers custom parts and pet injury coverage as optional endorsements. If you’ve had a lot of custom work done to your vehicle or you frequently travel with your pet, these may be things worth adding.
Allstate offers the most auto insurance discounts, including savings for paperless billing, paying in full, owning a new car and having safety features like anti-lock brakes and anti-theft devices. But curiously, it still gave us our most expensive quote at $365 per month with a $1,000 deductible.
You may be able to bring this cost down significantly if you choose a higher deductible, however; there are 11 different options available ranging from $50 to $2,500.
Despite the high cost, it’s worth looking into if you’re interested in certain endorsements like custom parts and ridesharing coverage. It’s also one of the only companies to offer new car replacement, which pays the full value to replace your new vehicle if it is totaled in an accident instead of the depreciated value. This coverage is especially valuable in a state like Louisiana where auto repair costs are among the highest in the nation.
Allstate received mixed reviews from customers, with those in the Consumer Reports survey rating it highly while those surveyed by J.D. Power gave it slightly below-average scores. If this concerns you, you may feel more comfortable choosing a company like GEICO or State Farm that is known for consistently scoring high in customer satisfaction.
Liberty Mutual’s quote fell right in the middle of the pack, so it could go either way for you depending on how many discounts you’re able to take advantage of. You can save by being a safe driver, owning a new or hybrid vehicle and paying in full.
There are also discounts available to new graduates, newly married couples and new retirees which you won’t find with any other insurance provider on this list.
Liberty Mutual offers several endorsements available that could save you quite a bit of money in the event of a claim, including a lifetime repair guarantee for vehicle repairs done at an approved facility. If that same item breaks again, you won’t have to pay anything out of pocket.
There’s also new car replacement and better car replacement, which pays to replace your totaled car with one a model year newer with 15,000 fewer miles on it.
You’ll save for being accident-free with Deductible Fund, too. Every year you go without an accident, Liberty Mutual will lower your collision deductible until it disappears entirely.
Like Allstate, Liberty Mutual received mixed reviews from consumers, though all seemed to agree that its claims handling was a step below the rest. Ideally, you won’t ever have to file a claim, but if this is a concern for you, you may feel more comfortable choosing a company like GEICO that has an established reputation for fair and efficient claims processing.
What Louisiana Drivers Need to Know
Many Louisiana drivers are uninsured or only carry minimum coverage.
According to the Insurance Information Institute, 13 percent of Louisiana drivers are uninsured. This is due in part to the high cost of auto insurance in the state, which many are unable to afford. According to Insurance Commissioner Jim Donelon, 40 percent of the drivers who are insured only carry the state minimum coverage.
Consequently, when drivers get into an accident, their small amount of liability coverage is not enough to cover the damages. This often results in lawsuits where people attempt to make up the difference by suing the other driver.
That’s why it’s critical to purchase as much liability coverage as you can comfortably afford, and make sure to add uninsured and underinsured motorist coverage as well in case you end up in an accident with another driver that doesn’t have insurance.
It may cost more in the short term, but it will save you thousands if you’re involved in an accident.
Louisiana has one of the highest rates of fatal accidents.
Gas is cheap in Louisiana, and this encourages people to drive more. Unfortunately, more drivers on the road also increases the chances of accidents, and these are often fatal. According to the Insurance Institute for Highway Safety, 757 people died in Louisiana in 2016 in fatal car accidents — the eight-highest rate in the nation by population density.
This is another key contributor to Louisiana’s high insurance rates because these claims are often expensive, especially if there is a lawsuit. Coupled with a rampant uninsured motorist problem, it’s easy to see why Louisiana’s auto insurance rates have been steadily rising for years.
Unfortunately, there’s nothing Louisiana residents can do about this besides staying safe and maintaining a clean driving record. If you do get into an accident, expect your rates to rise even higher. You may want to consider adding accident forgiveness, available with GEICO, State Farm, Allstate and Liberty Mutual, to protect yourself against rate hikes following a single accident.
It’s expensive to get your vehicle repaired in Louisiana.
The average auto repair cost per claim in Louisiana is $2,838 — $250 above the national average. This is another reason auto insurers must charge more in Louisiana: It costs them more to pay for your vehicle to get repaired, and they pass that added cost onto you in the form of higher premiums.
Many drivers don’t purchase collision or comprehensive coverage in order to reduce this cost, but this isn’t always possible. If you have a lease or loan on your vehicle, your lender will require you to carry this coverage. And even if you’re not required to have it, it’s still a good idea.
Collision coverage pays to repair your vehicle in the event that you are responsible for an accident. Comprehensive coverage pays for all types of accidents not related to collisions, like vandalism, theft, deer-vehicle accidents and storm damage. Considering how often Louisiana is hit by floods, this is a good investment.
Without this coverage, you will have to pay for your vehicle repairs entirely out of your own pocket, and if it’s totaled, you’re out of luck. If you’re concerned about the cost, you can always opt for a higher deductible. This will reduce your premiums significantly.