Louisiana auto insurance
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Find peace of mind with Louisiana auto insurance
Louisiana has a rich history and culture that residents and visitors are drawn to. However, the resident population of Louisiana has declined a bit over the last two years, now sitting around 4.5 million. The state also struggles with its crime rate, ranking lowest in the country for corrections and public safety.
An average of three people die each day on the highways of Louisiana. The number of highway fatalities in the state was a record high of 997 in 2021, placing Louisiana third on the list of highest rates of death per 100 million miles driven. Of these fatal accidents, 40% involved alcohol, and passengers were not using seatbelts in 50% of these accidents.
Part of the reason for Louisiana's rate of automobile fatalities is the condition of its highways. The state was second to worst in the nation for the condition of its interstates and 45th for its structurally deficient bridges. Louisiana has gone for three decades without increasing its funding for infrastructure, which has resulted in poor road conditions in both rural and urban settings.
From high crime and accident rates to poor road conditions throughout the state, owning and operating a car in Louisiana is fraught with risk. Protect yourself, your family and your investment with Louisiana auto insurance. VIU by HUB can help you compare quotes and find affordable coverage to meet all your needs.
State requirements for Louisiana auto insurance
Louisiana state law requires residents to carry liability insurance on all of their vehicles. This insurance covers personal injury or property damages up to a specified limit when you, your family or others with permission to use your vehicle cause an accident. Louisiana requires vehicles to maintain 15/30/25 liability limits:
• $15,000 for bodily injuries to a single person.
• $30,000 for bodily injuries to two or more people.
• $25,000 for damage to another person's property.
Liability coverage will also cover you if you are driving a rental car or another person's vehicle with their permission.
Cost of Louisiana auto insurance
Louisiana auto insurance rates are expensive. Annual minimum coverage costs around $2,275, compared to the national average of $1,445 per year. Rates vary widely from insurer to insurer, with some insurers offering annual premiums as low as $1,500 for the best rated drivers. Teenage drivers and drivers with traffic violations or accidents will pay a lot more.
Factors affecting Louisiana car insurance
Here are some other factors can negatively impact insurance rates. Repair costs
Car repairs are getting more costly due to constantly evolving automobile features and technology. In fact, a study by the National Association of Insurance Commissioners found that vehicle repairs cost 8% more in 2018 than they did in 2014.
Driving frequency
Drivers are on the road more often than they were in the past. This has led to a higher number of accidents, insurance claims and payouts.
Medical expenses
Healthcare costs are rising in the state by approximately 5% per year, which impacts insurance companies when they pay medical bills as part of a claim settlement.
Uninsured and underinsured drivers
Even though Louisiana requires all drivers to have auto insurance, many do not. State law does not require you to purchase Uninsured and Underinsured Motorist coverage to protect you from these drivers, but the law requires that every insurance company offer it to their auto insurance clients. This coverage pays for expenses when you are hit by an at-fault driver who either didn’t carry insurance (uninsured) or didn’t carry enough insurance to address all the medical bills or car repair costs (underinsured) involved.
Severe Weather
Weather events, such as droughts, floods, hurricanes, severe thunderstorms and tropical cyclones, are increasing in severity and frequency. These disasters create a higher number of claims for insurers, who pass on the costs to consumers through higher premiums.
Optional coverage for Louisiana vehicle owners
The process of acquiring Louisiana auto insurance can be overwhelming if you don't understand your options. Here are the different types of coverage you can choose for protecting your vehicle on and off the roads.
Liability Insurance
Louisiana, like most states, requires that you have Liability coverage. This insurance covers the cost of repairs to property and injuries resulting from an accident. It is advisable to carry Liability coverage above the state's minimum requirement if you can afford it, as you will be personally responsible for paying the difference if you cause an accident that results in costs that exceed your policy limits.
Collision Coverage
If you finance or lease your car, you may have to carry Collision Coverage. This insurance pays for your car repairs in the event of an accident and will pay the actual cash value of the vehicle if your car gets totaled. Many people opt out of this insurance for older cars because the benefit no longer justifies the cost.
Comprehensive Coverage
Collison coverage provides coverage for your vehicle if it is damaged by hitting another auto or property. Comprehensive coverage pays for damages to your vehicle by causes other than collision, like weather damage or theft. If you can afford Comprehensive Coverage, this type of coverage is helpful in Louisiana, which has high rates of auto theft and frequent bouts of bad weather.
Uninsured or Underinsured Motorist
Despite the legal requirement that all Louisiana drivers maintain liability insurance, not all drivers do; many only hold the minimum policy amounts, which are not always sufficient to cover the costs of an accident. Uninsured or Underinsured Motorist coverage kicks in to pay if the person who causes your accident does not have sufficient insurance to cover your expenses.
Personal Injury Protection (PIP)
Personal Injury Protection (PIP) covers some of your medical bills and those of your passengers in the event of an accident, regardless of fault. This type of coverage is advantageous and relatively cost-effective considering the benefits it provides.
This information is intended for general informational purposes only and is not intended to constitute legal advice.