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A whopping 96.1% rise in insurance cost in Louisiana, second highest in the country

In recent years, Louisiana has been one of the most expensive states in the country in terms of auto insurance expenditure. While it was ranked 15th most expensive state to buy auto insurance in 1989, it was ranked 3rd most expensive by 2010. Insurance costs in Louisiana showed the second highest rate of growth in the country with a rise of 96.1 percent. Auto insurance costs almost doubled from $572.96 to $1,121.46 from 1989 to 2010. To put that in perspective, there was 43.3 percent rise in the countrywide average figure.

In 1989, average auto insurance costs in Louisiana hovered slightly above the countrywide average. By 2010, auto insurance costs were close to one and a half times the countrywide average. The rise of 96.1 percent is second only to Nebraska’s 108.1 percent, the highest growth rate in the country. Moreover, the National Association of Insurance Commissioners gave Louisiana a Herfindahl–Hirschman Index (HHI) score of 1538 (any score less than 1000 is considered a competitive market; a score between 1000 and 1800 is considered moderately competitive by the Department of Justice). Louisiana’s HHI score is the 3rd worst of all states making it one of the least competitive markets in the country.

A December 2013 study by the Consumer Federation of America found that regulatory systems that allowed the most unregulated activity produced the lease competitive markets. The study also found that states that achieved the greatest success in keeping rates low had strong regulation, such as Prior Approval (PA), in place. A PA system requires insurers to file rates and obtain state approval prior to implementing them in the market. In contrast, Louisiana has File and Use (F&U) system in operation which requires insurers to file rate changes before use without any requirement for approval. States such as California and Hawaii have achieved much success in keeping rates low by implementing stringent insurance regulation including a PA system. Without adequate regulation, Louisiana’s already high insurance expenditure may spiral out of control.

Louisiana Auto Insurance Rates

Below are the minimum, average and maximum insurance rate estimates for neighbourhoods in and around Louisiana, LA.

Lowest Rate:$1,900
Average Rate:$2,700
Highest Rate:$3,600

Recent Savings From Top Providers in Louisiana

Rank Customer Zipcode Amount Saved
1 71301 $811
2 70300 $804
3 70400 $802
4 70001 $800

Compare Auto Insurance Companies in Louisiana

Company A.M Best Rating on
Financial Strength
Year Founded
Progressive A+ 1937
State Farm A++ 1922
Allstate A+ 1931
GEICO A++ 1936
Liberty Mutual A 1912
Louisiana Farm Bureau B++ 1922

Louisiana Auto Insurance Requirements

Minimum limits of liability for auto insurance in Louisiana as per LA State Laws

Bodily Injury Liability

  • $15,000 for death/injury of any one person, per accident.
  • $30,000 for all persons per accident.

Property Damage Liability

  • $25,000 per accident.

Louisiana Car Insurance Average Rates by Make

In addition to the location, one key factor that contributes to the insurance rates in Louisiana is the vehicle's make and model. Especially the vehicle's theft rates in Louisiana

MakeInsurance Average PremiumView Details
MakeInsurance Average PremiumView Details

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Latest Auto Insurance Reviews in Louisiana

Allstate

$154 for 1 Month

I have had no complaints for my insurer. I have also filed no claims. They are always extremely helpful whenever I have any questions or need to make changes on my policy. When I purchased a new vehicle, they had my insurance information faxed over within minutes which helped get me out of the door quickly. The price is very reasonable especially when bundled with my home owners policy. There is also a web page where I can view and print all my information if I need to free of charge. In the end, they are just like any other insurance company - betting your premium will cost them less in the end.