Louisiana Auto Insurance Requirements
In 2011, revised minimum insurance requirements went into effect in Louisiana for both private and commercial vehicle owners. Minimum auto insurance coverage requirements in Louisiana are mandated by state law and the Louisiana Department of Insurance. The following minimum coverage is required on every registered vehicle, except as noted below:
(Source: Louisiana Department of Insurance)
Driving without the mandatory liability insurance in Louisiana will result in revocation of car tages and a reinstatement fee of $50, in addition to showing proof of insurance prior to reinstatement.
The Louisiana Automobile Insurance Plan is available to drivers who are unable to obtain required coverage through the voluntary market. More information is available on the AIPSO website.
Factors Influencing Car Insurance Premiums in Louisiana
Getting a quote for cheap car insurance in Louisiana requires some real legwork, research and rate comparisons between different insurance companies, since Louisiana ranks as one of the most expensive states for car insurance costs. Some factors that impact insurance rates in Louisiana include:
• Weather-related vehicle damage claim rate is high, compared to the rest of the U.S.
• Louisiana is not a “no-fault” state, and does not require PIP insurance
• Vehicle repair costs are generally less expensive in Louisiana than elsewhere
• Overall accident fatality rates are much higher than national averages
• A much higher percentage of uninsured drivers compared to national averages
• High incidence rate of auto insurance fraud
• Vehicle theft rates are above national averages
The average auto insurance premium for residents in Louisiana is $2,453 in 2011; the national average is $1,790.
Tips for Obtaining Cheap Car Insurance in Louisiana
• If you’re over 55, take a state-approved defensive driving course for a policy discount
• Several insurance companies offer “pay as you drive” car insurance for low mileage drivers in Louisiana
• Maintain a good driving record
• Bind multiple policies (homeowners, life, auto) with the same provider
• Maintain a good credit score
• Create a personal “emergency fund” of up to $1500 and increase deductibles accordingly
• Discuss affinity discounts with your insurance provider
• Drop comprehensive and collision insurance on older vehicles
Louisiana Statistics
• Auto Theft: Louisiana has a very high vehicle theft rate, but it has been decreasing (as is the case in most states) consistently over the past 10 years. This can be attributed primarily to anti-theft devices being standard on recent model cars, as well as public awareness of the issue:
(Source: Auto Thiefs)
• Automobile Accidents: The total vehicle miles traveled in Louisiana has remained fairly constant in recent years, but vehicle accident fatality rates have declined somewhat. Louisiana is well above the national average in numbers of deaths in car crashes.
(Source: National Highway Traffic Safety Administration)
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