All Louisiana car owners and operators need to have auto insurance. Driving without a policy will result not only in legal liabilities such as fines and penalties, but also potentially thousands of dollars for injuries or property damage, in the event that you get involved in an accident. You should familiarize yourself with the Louisiana car insurance basics, as this will help you choose the right policy and prevent financial disasters.
Average cost of car insurance in Louisiana
The National Association of Insurance Commissioners (NAIC) claim that the average person pays roughly $1,146.29 for car insurance in Louisiana each year.
They broke this figure down to:
$723.93 is the average annual liability insurance expenditure.
$380.26 is the average annual collision insurance expenditure.
$203.52 is the average annual comprehensive insurance expenditure.
Young Drivers in Louisiana
Our case study revealed that young drivers in the Bayou State can expect an annual car insurance premium average of:
- $1718.4 for state minimum coverage1,
- $3347.2 for basic full coverage2 and
- $5060.4 for premium full coverage3.
Insurance companies take into account various factors when calculating how much to charge their policy holders. For young drivers, this set of variables includes the exact location they live in. In general, drivers aged 20 or below have higher rates, but those residing in Shreveport and Lockport with estimated populations of 197,204 and 2,576 (2015, latest data4) respectively, can pay as low as $106 a month.
Female Drivers in Louisiana
Women in Louisiana can expect affordable premiums. The annual averages for a female driver are:
- $880 for state minimum coverage,
- $1667.6 for basic full coverage and
- $2570.4 for premium full coverage.
From these results, you can see a big difference between what female and young drivers pay for. Breaking it down further, women pay: $838.40 less than their younger counterparts for state minimum coverage, $1,679.60 for basic full coverage, and $2,490 for premium full coverage.
Senior Drivers in Louisiana
We used the profile of a 68-year-old male driver as part of our methodology5. Our study revealed that senior drivers in LA pay the following averages:
- $939.6 for state minimum coverage,
- $1714.8 for basic full coverage and
- $2558.4 for premium full coverage.
Although insurance expenses go up once again when a driver turns 65 years old, this doesn’t mean they can’t do anything to reduce their premiums. Completing defensive driving courses and keeping their records clean can qualify them for money-saving discounts.
Minimum car insurance requirements
The Louisiana Department of Insurance takes responsibility for the regulation of all types of insurance programs in the state, including motor vehicle insurance. Liability insurance coverage is the primary component that makes up an in-compliance car insurance policy.
With this type of insurance coverage, you will receive financial assistance for damages and/or injuries you have caused to others in the event that you are at fault for the road accident. Although you always have the option to increase your coverage limits, the state laws require you to have a $15,000 minimum bodily injury coverage for one person, a $30,000 minimum per accident bodily injury coverage, and a $25,000 minimum for property damage coverage.
Take note that failure to show proof of valid liability insurance coverage will result in you not receiving an approval for the registration of your car. In other words, you cannot legally operate your vehicle without a policy.
Car insurers have various other coverage types to offer to Louisiana motorists. These include collision insurance, comprehensive insurance, uninsured/underinsured motorist insurance, medical payments coverage, rental reimbursement coverage, as well as towing and labor coverage.
Violations and Penalties
In Louisiana, driving without insurance can cost you up to $500 in fines. This applies to first, second, and third offenses.
In addition to this fine, first time offenders would also have their registration suspended and their plated revoked until they show proof of valid insurance and they have paid for the reinstatement fee amounting to $60. The authorities may also impound your car in the event you fail to comply with these Louisiana insurance provisions.
As for second time and subsequent offenders, the same rules apply when it comes to the suspension of their registration and the revocation of their plates. However, the reinstatement fees increase: $160 and $510, respectively. Impoundment of the vehicle may also occur, depending on the circumstances.
Driving safety in Louisiana
According to the Centers for Disease Control and Prevention (CDC), Kentucky falls below the 86% national average of motorists and front-seat passengers wearing seatbelts, as only 84% of them do.
In a 2015 study conducted by the National Highway Safety Administration, it showed that 761 driving fatalities occurred during the year, and 25% (192 cases) were due to alcohol impaired driving.
Because of this, the CDC rates the overall vehicle occupant death in the state at 12.9 per 100,000 residents.
Car insurance is extremely important not just because the law requires you to have it, but also due to the protection it gives you, your passengers, and other people you share the road with.
|1||State minimum coverage includes the minimum liability insurance limits required in your state but excludes the following:
|2||Basic full coverage includes:
|3||Premium full coverage includes:
|4||Latest data: The U.S. census is conducted every 10 years as per requirement of the United States Constitution. The 23rd edition and the latest data is the 2010 United States Census. Source: https://en.wikipedia.org/wiki/2010_United_States_Census|
|5||Methodology: To achieve accurate results we obtained estimates for 10 cities in the state: 5 of the largest cities and 5 randomly picked smaller cities. For each city, we collected premiums for 3 levels of coverage: state minimum coverage, basic full coverage and premium full coverage. We used 3 different driver profiles for the case studies. For the young driver profile we used a 20-year-old single male or female with 1 year driving experience. Second, the profile fit that of a 35-year-old married female with 12 years of driving experience. The last profile we used in our studies is a male senior driver who was 68-year-old with 45 years of driving experience. The vehicle we used for all three driver profiles was a 2012 Honda Accord EX.|