Louisiana is caught in a vicious cycle. Its auto insurance rates are among 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 can’t afford to pay, or they end up in court. All of this means greater expense to insurance companies, which leads to increased rates and an even greater strain on drivers. Finding an affordable auto insurance policy in Louisiana is difficult, but it isn’t impossible. You just have to shop around.
How We Found the Best Louisiana Auto Insurance Companies
We gleaned baseline auto insurance knowledge from our review of national auto insurance companies and then compared companies based on market share percentages in Louisiana in order to find the biggest players in the space. From there, we checked rating agencies like A.M. Best, Moody’s, and S&P Global to ensure that they were all financially sound and reliable in paying their customers’ claims.
We then evaluated each company on coverage limits, endorsements, discounts, and customer satisfaction ratings according to J.D. Power and Consumer Reports to determine which provided the most coverage and best service for the most reasonable price. This means we picked up the phone to chat with local agents and tried out the quote processes for ourselves.
The 4 Best Auto Insurance Companies in Louisiana
State Farm is your best choice if you’re interested in purchasing high liability coverage limits. It enables you to purchase up to 500/500/500, which should be enough to cover even the most serious accidents. State Farm also did well in the regional J.D. Power assessment and Consumer Reports survey, though J.D. Power rated it lower in terms of claim handling. Still, we wouldn’t worry about any problems when the time comes to file a claim, as State Farm received an A++ financial stability score from A.M. Best.
The tradeoff, of course, is a higher price. That said, you can counteract those high premiums by taking advantage of State Farm’s state-specific discounts, which include the Drive Safe and Save and Steer Clear programs.
State Farm covers all the bases for Louisiana drivers, 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.
You can also choose a higher deductible, and in some cases, you may not have a choice. When we tested, the minimum collision deductible was $250, which is high considering that Liberty Mutual only required a $50 minimum. If you want to minimize your expenses in the event of a claim, one of our other companies may be a better fit.
When we pulled sample quotes from each company, Progressive gave us the most affordable rates at $211 per month. The company is known for its low prices, making it one of the first stops for those on the hunt for affordable auto insurance. However, Allstate allowed us to decide whether we wanted a deductible as low as $50 and to waive our comprehensive deductible altogether, whereas Progressive’s lowest deductible was $100. Progressive is also our only pick that doesn’t offer accident forgiveness, so there’s no way to protect yourself against rate hikes if you are involved in an accident.
Progressive is a great choice if you’re interested in endorsements like gap coverage, which pays the balance of your lease or loan in the event that your car is totaled. Progressive also offers rideshare, custom parts, and pet injury coverage, so if you’ve had a lot of work done to your car over the years or travel with your furry friend frequently, it’s worth considering.
Allstate offers a good amount of 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. However, it still gave us the 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, and there are 11 different options available ranging from $50 to $2,500. Allstate also offers deductible rewards, but unlike the unlimited deductions that Progressive and Liberty Mutual offer, Allstate will only take $100 off your deductible every year for up to $500.
Allstate also offers new car replacement coverage, which pays the full value — not the depreciated one — to replace your new vehicle if it’s totaled in an accident. This can be especially valuable in a state like Louisiana, where auto repair costs are among the highest in the nation. In terms of receiving your payment in a timely manner, Allstate has you covered, too. Consumer Reports gives it “excellent” marks in a few areas (timely payment included), and J.D. Power finds Allstate to be about average in comparison to the rest of the biggest players in the Southeast U.S.
Liberty Mutual’s quote fell right in the middle of the pack, so your rates will likely depend on how many discounts you qualify for. You can save by being a safe driver, graduating, getting good grades, owning a new or hybrid vehicle, and paying in full upfront. Plus, every year you go without an accident, Liberty Mutual will lower your collision deductible until it disappears entirely.
Liberty Mutual also offers several endorsements 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. Additionally, you’ll find new and better car replacement endorsements, both of which will pay to replace a totaled car (depending on the circumstance).
Unfortunately, with an “A” from A.M. Best, Liberty Mutual has the lowest financial strength rating of all our top picks. It also earned a below-average score from J.D. Power, earning two out of five stars for overall satisfaction, interaction with agents, and claims experience. Overall, we still think it’s a solid choice, but these drawbacks are still worth considering if you value customer service.
Guide to Louisiana Auto Insurance
Make sure you meet the minimum
By law, all drivers are required to carry liability insurance, but the exact amount state minimum 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 states require at least 25/50/25. 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, as state minimums aren’t nearly enough to cover a worst-case scenario. For example, 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 best way to save on your auto insurance (in a state with higher rates than average, especially) is to shop around. Each insurer has its own formula for calculating premiums. 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. You can start finding the right rates for you by utilizing our quote tool at the top of the page.
According to the Insurance Information Institute, 13% of Louisiana drivers are uninsured. This is partly due to the high cost of auto insurance in the state, which many are unable to afford. Insurance Commissioner Jim Donelon says that 40% of insured Louisiana drivers only carry the state minimum coverage. So, when drivers get into an accident, their small amount of liability coverage is not enough to cover the damages, which often leads to lawsuits to recoup some of the costs.
This is why it’s critical to purchase as much liability coverage as you can comfortably afford and to consider uninsured and underinsured motorist coverage in case you end up in an accident with another driver who 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 Auto Insurance FAQ
The average Louisiana policyholder pays about $1,405 in combined average premiums — a hefty number when compared to the rest of the country at $1,009. This is only a rough estimation of how much you’ll actually end up paying; as we’ve stated, your premium largely depends on your age, driving history, and ZIP code. However, more recent (2018) data suggests that Louisiana still leads the pack in high rates, so it’s important to choose and compare wisely.
Gas is cheap in Louisiana, and this might encourage people to drive more. Unfortunately, more drivers on the road also increases the chances of accidents — some fatal. According to the Insurance Institute for Highway Safety, 757 people died in Louisiana in 2016 in fatal car accidents, the eighth highest rate in the nation by population density. This, in turn, is another contributor to Louisiana’s high insurance rates: These claims are often expensive, especially if there’s a lawsuit. Coupled with a relatively high uninsured motorist problem, it’s easy to see why Louisiana’s auto insurance rates have been steadily rising for years.
You might consider forgoing collision or comprehensive coverage in order to reduce premium costs, 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, and comprehensive pays for all types of accidents not related to collisions, including vandalism, theft, deer-vehicle accidents, and storm damage. Considering how often Louisiana is hit by floods, this is a good investment.
Without collision and comprehensive 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, which will reduce your premiums significantly.
The Best Louisiana Auto Insurance Companies: Summed Up
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