Car Insurance

Why is Auto Insurance So Expensive in Louisiana? An Analysis of Louisiana’s Auto Insurance (2024)

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Key Points
  • Louisiana drivers consistently rank among the highest in the U.S. for auto premiums, paying about $1,685 annually in 2020—nearly 43% more than the national average of $1,177.
  • Claim severity and litigation drive up costs, with Louisiana paying out ~$106 for every $100 in premiums, supported by high legal expenses and injury claim rates twice the national average.
  • Key contributing factors include a litigious legal environment (direct-action statutes, high jury trial thresholds), high numbers of uninsured and distracted drivers, frequent vehicle thefts, and severe weather events—forcing insurers to raise premiums to cover risks.

It’s no secret that Louisiana has battled high auto insurance premiums for decades. According to the National Association of Insurance Commissioners, Louisiana had the highest combined average premium (liability, comprehensive, and collision combined) from 2015 to 2020 and has been among the three highest states since 2006.

In 2020, Louisiana drivers paid an average premium of $1,684.86 compared to the national average of $1,176.81.

During the COVID-19 pandemic, insurance companies lowered premiums due to fewer cars on the road, but premiums have since risen above previous highs.

Auto Insurance Affordability

If we look at the affordability of auto insurance based on the median income of a state’s residents things look much worse for Louisiana. According to a 2021 study conducted by the Insurance Research Council, on average auto insurance expenditures make up 3.09% of Louisiana residents’ median income compared to the US average of 1.67%. That’s almost double the national average!

Why is Louisiana’s Auto Insurance So Expensive?

What Can Be Done to Lower Auto Insurance Rates in Louisiana?

Louisiana’s high auto insurance rates are a major burden on residents. The state must take steps to address the factors that are driving up premiums to bring Louisiana in line with the rest of the nation. If you have questions about your insurance policies, please reach out by filling out our contact form or giving us a call. We are happy to help!

Jeffrey Mohr Headshot

Jeffrey Mohr, CPCU, ARM

Jeff Mohr is the President and Owner of Lewis Mohr Insurance Agency. He began his career in 1982 after earning a degree in Management and Finance from LSU, followed by a Master’s in Insurance Management (MSIM) from Boston University. With over 40 years of experience, Jeff holds the CPCU and ARM designations and is a past president of the Independent Insurance Agents & Brokers of Louisiana. He has been recognized with the Lou Daniel Award for outstanding service to the insurance industry and remains active in civic and community organizations. Jeff leads the agency with a deep commitment to trusted service, ethical standards, and generational growth.
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