You’ll find many things to love about living in Louisiana, including the many beautiful sights around the state. Whether you’re already enjoying the state or are just moving there, you’ll need to have car insurance in order to be out on the road to see the attractions. The average auto insurance in the state costs $333 a month, but what you pay depends on many different factors and could be more or less than this. Here’s a look at how to get cheap car insurance In Louisiana.
What Companies Offer Cheap Car Insurance in Louisiana?
Overall, Louisiana Farm Bureau offers the cheapest car insurance rates in Louisiana for minimum coverage, and its rates are less than the state average. State Farm also offers cheaper rates for minimum coverages than the state averages, and you can also get good rates with Southern Farm Bureau and Geico.
If you want full coverage, Southern Farm Bureau offers some of the cheapest rates. USAA (which is only available to active duty or retired military members and their immediate families) also has some of the lowest premium rates for full coverage, along with Geico, Louisiana Farm Bureau, and Safeway.
What Are the Minimum Requirements for Insurance in Louisiana?
Louisiana state law states that all drivers are required to carry liability coverage on any vehicle they own. This coverage will pay for property damage and personal injury if you are found responsible for an accident. The minimum limits include:
- $15,000 for bodily injury to one person
- $30,000 for bodily injury for more than one person in a single occurrence
- $25,000 of coverage to pay for damage to another person’s vehicle or property
What Are the Different Types of Insurance?
Several different types of insurance are available, and it can get confusing if you’re not sure what each one covers.
- Liability insurance. Liability covers property damage and bodily injury caused by you or someone driving your car with your permission. It covers you and your family members, whether you are behind the wheel of your own vehicle or someone else’s, including a rental.
- Comprehensive insurance coverage. Comprehensive insurance pays for damages to your vehicle resulting from something other than an accident. This means that if it’s vandalized, a branch falls on it, or it receives damage during a storm, the insurance will pay for the repairs.
- Collision insurance coverage. Collision pays for damages to your vehicle in the event of an accident. Your insurance company will pay regardless of who is found at fault for the accident.
- Uninsured/underinsured insurance coverage. This insurance pays for damages and medical bills if you’re in an accident where the other driver is at fault but either doesn’t have insurance or doesn’t have enough to cover the repairs.
Liability insurance is the only mandatory coverage in the state of Louisiana, and the minimums are on the low side. You might want to increase the amount of coverage you buy to protect your finances if you get into an accident. The state does not require the other insurance coverage, but if you finance your car, the lender might require them.
What Factors Affect Auto Insurance Premiums in Louisiana?
Insurance companies take several factors into consideration when they calculate your premiums.
- Your age. Age is one of the most significant factors when determining auto insurance rates. In general, young drivers are less experienced, which is considered a higher risk. This means they will pay higher rates than older drivers.
- Your gender. Young male drivers will pay more than young female drivers, but as you get older, this changes. Older female drivers typically have higher rates than older male drivers.
- Where you live. Some areas in Louisiana have higher insurance rates than others. Urban areas typically have higher crime rates and higher accident rates, so rates in the city are higher than in rural towns.
- The type of car. Sports cars, performance vehicles, and luxury cars are more expensive to insure than a safe sedan. This affects the comprehensive and collision rates more than the liability.
- Your deductible. If you’re willing to have a high deductible, you can keep your premiums lower. It’s important to keep in mind that you’ll need to pay the deductible from your personal bank account if you get into an accident.
- Your driving record. Drivers with clean driving records will pay lower rates than drivers with speeding tickets, at-fault accidents, and DUIs. If you have a DUI on your record, insurance companies will deem you a high-risk driver and charge you higher premiums.
How Do I Find Cheap Car Insurance in Louisiana?
The best way to find cheap car insurance in Louisiana is to shop around. It’s also important to note that the cheapest insurance might not be the best. As you learn the rates, compare the types of coverage you can get. You’ll also want to look at customer satisfaction and how each company takes care of claims. Good car insurance should provide the coverage you need to protect you and your assets, not just have the cheapest rate.
Another way to find cheap coverage in Louisiana is to keep your driving record clean. If you don’t have any tickets or accidents on your record, insurers will offer you clean-driving discounts. If you have some blemishes on your driving record, you might still be able to lower your rates by taking a defensive driving course or enrolling in a telematics program. This type of program uses a device that’s attached to your vehicle to record your driving habits. Check with your insurance company to see if it offers these types of discounts.
You can search for additional discounts that will lower your premiums. Insurance companies will offer discounted rates if you insure multiple vehicles or if you have different insurance lines, such as your auto and homeowners or renters insurance.
Finding cheap car insurance in Louisiana might take a little time and research, but good rates are available for every type of driver. Make sure you get quotes from multiple insurers and compare coverages to ensure you get the best policy for your needs.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.