Why Is Car Insurance So Expensive in Louisiana? (2026)

4 reasons why car insurance is so expensive in Louisiana

Although Louisiana car insurance rates dropped in 2025, they’re still more expensive than what drivers pay in neighboring Texas, Arkansas, and Mississippi.

Several factors contribute to Louisiana’s high car insurance rates, including severe weather and flooding, high crash rates, costly legal claims, and rising vehicle repair costs.

1. Severe weather and flooding

Louisiana’s frequent hurricanes, thunderstorms, and flooding can lead to expensive auto claims. Hurricanes strike the state about once every three years, and Louisiana has the second-highest average number of thunderstorms in the contiguous U.S. Severe weather mainly affects comprehensive insurance rates but can also lead to collision and liability claims.

2. High rate of serious and fatal crashes

Louisiana has a substantially higher rate of fatal crashes than the U.S. overall. In 2024, the state recorded 16.4 motor vehicle deaths per 100,000 people, compared with 11.5 nationwide, according to Insurance Institute of Highway Safety (IIHS) data. Frequent serious accidents can lead to costly injury and vehicle-damage claims, contributing to higher insurance rates.

3. Litigation and costly injury claims

Louisiana drivers file injury claims after crashes at nearly twice the national rate, according to the Insurance Research Council (IRC).^[1] In 2022, the at-fault driver’s insurance wasn’t enough to cover medical expenses in 36% of Louisiana crashes involving injuries.^[2]

Auto insurance claims in Louisiana also entered litigation at nearly four times the national rate. Louisiana Insurance Commissioner Tim Temple has cited litigation costs as one factor behind the state’s high premiums.

4. Rising vehicle repair costs

Vehicle damage claims cost insurers more in Louisiana than they do nationwide. In 2022, the average property damage liability claim in Louisiana was $6,246, about 9% above the national average, according to IRC data.

Louisiana also had 16% more property damage liability claims per 100 insured vehicles than the national average. More frequent crashes and somewhat higher repair costs can add to insurers’ expenses and put upward pressure on premiums.

Find Cheap Car Insurance in Louisiana

Liability policies average $106/mo.

Enter your ZIP codeView My Quotes

Excellent

4.7 out of 5 based on 17,863 reviews

Secure. Free. Easy-to-use.

How Louisiana car insurance rates have changed

Car insurance premiums in Louisiana were stable from 2021 to 2022, then rose 26% from 2023 through the first half of 2024, according to Insurify data. Rates then reversed course, dropping by 23% between late 2024 and mid-2026, according to Insurify data. Premiums now average $2,504 per year or about $209 per month.

Here’s a look at the last five years of average car insurance premiums in Louisiana.

Louisiana cities with the most expensive car insurance

Car insurance rates vary across Louisiana due to a variety of factors, including population density, traffic congestion, drunk driving rates, crash rates, and the costs associated with auto repairs.

For example, rates are most expensive in New Orleans, Baton Rouge, and Metairie. All three cities have high population densities and high crash rates, which increase the risk of claims. Insurance companies make up for that risk by raising rates. 

Rates are cheapest in Houma, Bossier City, and Shreveport. These towns have relatively low crash rates.

The table below shows the average monthly car insurance costs in several Louisiana cities.

City	Average Monthly Quote
Alexandria	$144
Baton Rouge	$178
Bossier City	$128
Houma	$124
Lafayette	$151
Lake Charles	$156
Metairie	$171
New Orleans	$190
Shreveport	$132
Slidell	$157

Disclaimer: Table data is based on real-time Louisiana quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.

These five cities are the most expensive cities in Louisiana. Here are some reasons why rates are so expensive in these cities, according to state and city data:

• New Orleans: High population density, substantial traffic congestion, high crash rate, and exposure to flooding

• Baton Rouge: High population density, substantial traffic, flood risks, and a higher crash rate than New Orleans

• Metairie: Exposure to severe weather and high crash rates

• Slidell: Proximity to New Orleans, which increases traffic congestion

• Lake Charles: Exposure to severe weather, risk of flooding, and more traffic violations than the Louisiana state average

Compare Louisiana Car Insurance Quotes

See quotes from top insurers in minutes

Enter your ZIP codeGet My Quotes

Excellent

4.7 out of 5 based on 17,863 reviews

Secure. Free. Easy-to-use.

How to lower your car insurance rate in Louisiana

To lower the cost of car insurance in Louisiana, try these tips:^[3]

• Compare quotes. The Louisiana Department of Insurance recommends getting quotes from several insurers before choosing a policy. Rates can vary by company.

• Keep a clean driving record. Speeding tickets, accidents, and operating while impaired (OWI) convictions can raise your premium.

• Drop extra coverages. You might not need a full-coverage policy for lower-value and older cars. Just be sure you can afford to cover repairs out of pocket if your vehicle is damaged.

• Drive less. Lower annual mileage may help you save money on car insurance. Consider carpooling, biking, or taking public transit when you can.

• Maintain a good credit history. Some Louisiana insurers use credit-based insurance scores when setting rates, so a lower score could mean a higher premium.

• Bundle your policies. Many insurers offer a bundling discount when you buy more than one type of policy, such as auto insurance and home, renters, life, or business insurance.

• Ask about discounts. You may qualify for discounts for insuring more than one car, having extra safety features, or taking a defensive driving course. Eligible military personnel can also get a 25% discount on liability insurance in Louisiana.

Why car insurance is so expensive in Louisiana FAQs