Cheap Car Insurance for Low-Income Drivers in Louisiana

What is low-income car insurance in Louisiana?

Nearly 20% of Louisiana residents live in poverty, according to U.S. Census Bureau data. Those drivers may be looking for low-income car insurance, but it isn’t a special type of policy. But low-income drivers can decrease their insurance premiums by seeking discounts or reconsidering their coverage levels.

One way to lower your insurance costs is to maintain a clean driving record. Buying minimum liability insurance rather than a full-coverage policy also lowers your premium.

Minimum liability insurance pays for the other driver’s property damage and medical bills if you cause an accident.^[1]

But liability-only car insurance won’t pay for your own car repairs or medical expenses. For that, you’d need comprehensive and collision coverage, plus medical payments coverage.

Cheapest car insurance in Louisiana

State Farm has the cheapest car insurance in Louisiana, with an average cost of $53 per month for liability-only coverage. Drivers in Louisiana pay an average of $106 for state-minimum coverage, which is slightly higher than the national average of $99 per month.

The state’s likelihood of severe weather contributes to insurance rates. Closer to the coast, New Orleans and Baton Rouge face extreme wind conditions and a high risk of hurricanes.^{[2] [3]}

Even cities farther inland, like Shreveport, have a major wind risk. And certain areas, including New Orleans and Slidell, also have a very high flood risk, according to First Street data.

Rates also vary among Louisiana cities based on accident and vehicle theft risks. New Orleans drivers pay an average of $136 per month for liability insurance. The city has a population of roughly 362,000, according to U.S. Census Bureau data.

With its smaller population of roughly 63,000, Bossier City has an average monthly rate of $85 for liability-only coverage.

The table below shows the cheapest liability-only car insurance rates from various companies in Louisiana.

The below rates in Louisiana are estimated rates current as of: Wednesday, September 30 at 5:00 PM PDT. 

Insurance Company	Average Quote: Liability Only
State Farm	$53
National General	$63
Progressive	$63
USAA	$66
Allstate	$79
GEICO	$88
Direct Auto	$89
The General	$105
Bristol West	$120
Root	$145
Safeco	$159
Hugo	$248

Disclaimer: Table data sourced from real-time Louisiana car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in Louisiana may vary based on the policy buyer's unique driver profile.

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Cheapest car insurance for drivers with poor credit in Louisiana

Not all states allow insurance companies to use credit history as a pricing factor. But Louisiana, like many states, lets companies consider credit when determining rates.

Even so, insurers can’t deny, cancel, or non-renew a policy using your credit history as the sole factor.^[4] Instead, they consider your credit-based insurance score as just one of several factors that determine your car insurance costs.

Drivers with poor credit in Louisiana may pay more for car insurance than drivers with good or excellent credit. That’s because a poor credit history may indicate a higher risk that a policyholder will file a claim, which costs the insurance company money.^[5]

The following table shows average monthly liability quotes for drivers with poor credit and drivers with good credit.

The below rates in Louisiana are estimated rates current as of: Wednesday, September 30 at 5:00 PM PDT. 

Insurance Company	Average Monthly Liability Quote: Poor Credit	Average Monthly Liability Quote: Good Credit
State Farm	$77	$52
Progressive	$77	$61
National General	$77	$61
USAA	$81	$64
Allstate	$97	$77
GEICO	$102	$86
Direct Auto	$109	$86
The General	$129	$101
Bristol West	$147	$117
Root	$178	$139
Safeco	$195	$153
Hugo	$304	$240

Disclaimer: Table data sourced from real-time Louisiana car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in Louisiana may vary based on the policy buyer's unique driver profile.

Car insurance options for low-income drivers in Louisiana

The best way for low-income drivers in Louisiana to find affordable coverage is to compare quotes from multiple insurance companies. The Pelican State doesn’t have a low-income car insurance program, but it does have an assigned-risk plan called the Louisiana Automobile Insurance Plan.

AIPSO manages the Louisiana Automobile Insurance Plan. Coverage is typically more expensive through an assigned-risk plan than with standard car insurance companies.

But if standard insurers refuse to cover you because they consider you too high-risk, an assigned-risk plan allows you to get the coverage you need.

Consider non-standard insurers, too, such as The General, Direct Auto, or Hugo. These and similar insurers offer coverage for high-risk drivers, drivers who need an SR-22, and drivers who prefer to pay their premiums in smaller installments.

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Minimum car insurance requirements in Louisiana

Louisiana requires all drivers to have a minimum amount of liability insurance. This includes:

• Bodily injury liability, which covers others’ medical expenses and your legal costs if you cause an accident

• Property damage liability, which pays to repair damage you cause to someone else’s vehicle or property

While buying only state-minimum coverage can lower your car insurance costs, it may leave you paying for damage to your own vehicle out of pocket. In Louisiana, the average cost of a crash that resulted only in property damage was just under $35,800 in 2023.^[6] 

If you’d struggle to pay for repairs or to replace your vehicle on your own, full coverage car insurance may be a good idea. But keep in mind if you lease or finance your vehicle, a full-coverage payout may not be enough to cover your outstanding loan balance. Gap insurance can help you pay off a loan or lease if your car is totaled.

If a crash also causes injuries, costs will be much higher. This means the minimum-required insurance may not be enough to cover all the damages.

These are the minimum coverage requirements in Louisiana.

Coverage	Minimum Requirement	What It Covers
Bodily injury liability	$15,000 per person, $30,000 per accident	Bodily injuries you or someone you allow to drive your vehicle causes to others in an accident
Property damage liability	$25,000 per accident	Property damage you or someone you allow to drive your vehicle causes to others in an accident

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What affects car insurance rates in Louisiana?

Beyond your age, driving history, vehicle, and where you live, several other factors affect your car insurance rates in the Pelican State.

For example, 60% of major roads in Baton Rouge are in poor condition, and traffic congestion causes 64 hours of delay per year for the average driver.^[7] Deteriorating road conditions and more time spent on the road can increase car insurance claims and raise premiums for all drivers.

Louisiana also has a high risk of adverse weather — especially hurricanes. New Orleans, for example, has a major flood risk and an extreme wind risk, according to First Street.

Flying debris from hurricanes and windstorms can damage vehicles, resulting in numerous insurance claims after severe weather events.

About 11.7% of Louisiana drivers are uninsured, according to the Insurance Research Council. While the state doesn’t require uninsured/underinsured motorist coverage, this coverage offers financial protection if a driver without sufficient insurance causes an accident.

Vehicle theft is also a concern in Louisiana. The state ranks No. 23 nationwide in vehicle thefts by volume, according to Insurify data, with 4,301 cars stolen in the first half of 2025.

New Orleans ranks No. 41 in the country for car thefts by volume, and Baton Rouge ranks No. 66, according to Insurify data. In cities with high vehicle theft rates, car insurance is typically more expensive.

Low-income car insurance in Louisiana FAQs