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Do you live and drive in the Big Easy? Finding affordable auto insurance in Louisiana doesn’t have to be a major puzzle. Check out Benzinga’s guide to car insurance in New Orleans.
The Best Car Insurance in New Orleans
- Best Overall: State Farm
- Cheapest: Southern Farm Bureau
- Best for Military Families: USAA
New Orleans Car Insurance Overview
Here are a few fast facts about driving in New Orleans:
- The average New Orleans household has 1.26 vehicles.
- The state minimum car insurance requirements are $15,000 in bodily injury liability coverage per person and $30,000 in bodily injury liability coverage per accident, with $25,000 property damage liability coverage.
- The average state minimum insurance payment with a clean driving history is around $1,200 per year.
New Orleans Car Insurance Law Explained
New Orleans and the state of Louisiana require all vehicle operators to have car insurance. You must have the following coverage to legally drive a vehicle:
- Bodily injury liability coverage: Bodily injury liability pays for the expenses of other people that you injure in an accident. You're required to have at least $15,000 per person and $30,000 per accident.
- Property damage liability coverage: Property damage liability coverage pays for your damage to other people’s property during an accident. You’re required to have $25,000 per accident.
Be aware that neither of these coverages offer any protection for your injuries or vehicle as the driver. You can protect your property by adding both comprehensive and collision coverage to your policy.
- Collision coverage: Collision coverage pays for damage to your vehicle after an accident.
- Comprehensive coverage: Comprehensive coverage pays for damage to your vehicle that is not the result of a collision. Theft, hail and vandalism are typical examples that would all be covered.
Both collision and comprehensive coverage require you to pay a deductible. A deductible is the set amount you pay to fix your car, and the insurance company covers the rest. Typical deductibles can range anywhere from $500 to $1,000.
Choosing a higher deductible can lower your overall premium, and higher deductibles save you money on your monthly premium. However, be prepared to come up with the money out of pocket in case of an accident.
Speaking of significant expenses, you always want to make sure you have proof of insurance in New Orleans. If law enforcement catches you driving without insurance, you could be charged a hefty fine, even as a first offense. A “no insurance” ticket requires a court appearance in New Orleans.
New Orleans Car Insurance Rates per Vehicle
The car you drive can affect your car insurance payment. Insurance companies have figured out the chances of each make and model being stolen or damaged from an accident, and they adjust your premiums based on that data.
Are you driving an expensive vehicle? It will cost the insurance company more to compensate you for your car if it is damaged or stolen — therefore, your payment will increase.
The insurer also factors in your vehicle safety features. Cars get a lower rate when they have advanced safety features such as automatic high beams, pedestrian detection and automatic emergency braking.
In contrast, owners can expect to pay more when their vehicles lack basic safety features such as airbags. You may also lower your cost and get an added discount by installing an antitheft device.
The most popular vehicle in New Orleans is the affordable Nissan Altima. This vehicle is among the most inexpensive to insure because of its advanced safety features and mid-range price, compared to other cars in the same style.
Car Insurance Rates by Insurance Credit Score
People are often surprised to find out that it’s legal for insurance companies to change your premium based on your insurance credit score. Your insurance credit score and credit generally go hand in hand. Insurance statistics reveal that drivers with higher credit scores make fewer claims and are less likely to be involved in an accident. In contrast, drivers who have lower scores are more likely to file claims.
| Credit Score | Cheapest Provider | Rate for State Minimum Coverage |
|---|---|---|
| Poor 300–579 | Allstate | $5,263 |
| Fair 580–669 | Southern Farm Bureau | $3,322 |
| Good 670–739 | Southern Farm Bureau | $3,215 |
| Excellent 740+ | Southern Farm Bureau | $3,084 |
As you can see, your credit score can affect your car insurance costs. One strategy to lower your insurance rate is to raise your credit score. You can reduce debt, pay bills on time and lower your credit utilization to see your credit score go up.
Insurance for Drivers with a Clean Record
Have you been in a car accident in the past few years? If so, insurance companies will charge you more because of it. Insurers see you as a lower risk when you have a clean driving record. Most insurance providers grant you a discount if you keep a clean record before and during the length of your policy.
Here’s a quick summary of 3 different choices for coverage:
- State minimum insurance is only the minimum coverage for legal driving in Louisiana.
- Standard coverage insurance is the state minimum coverage with collision coverage.
- Full coverage insurance is the state minimum coverage with collision coverage and comprehensive coverage.
| Insurance Company | State Minimum Insurance | Standard Coverage | Full Coverage |
|---|---|---|---|
| Progressive | $943 | $2,145 | $3,302 |
| State Farm | $1,043 | $1,256 | $1,345 |
| Southern Farm Bureau | $1,067 | $3,084 | $3,157 |
| Allstate | $2,454 | $3,260 | $3,458 |
| GEICO | $1,587 | $1,687 | $1,897 |
Insurance Rates with Driving Infractions
You’ll pay more for insurance if you have driving infractions — some violations change your premium more than others.
Here are 3 common driving infractions that could affect your premiums.
- At-fault accident: An at-fault accident is an accident where you’re full or partially responsible.
- Speed violation: A speed violation occurs when you drive too far above or below the posted speed limit. Excessive speeding can cause insurance rates to significantly increase.
- DUI: A DUI means you’ve driven under the influence of alcohol or drugs. It’s a criminal offense and one of the most severe violations you can have on your record. Your car insurance rate will drastically increase if you have a DUI conviction. A blood alcohol content of 0.08 or above is illegal when you drive in Louisiana.
| Insurance Company | At-Fault Accident | Speed Violation | DUI |
|---|---|---|---|
| Southern Farm Bureau | $3,322 | $2,015 | $6,245 |
| State Farm | $4,363 | $3,254 | $6,875 |
| Allstate | $5,121 | $3,445 | $7,851 |
| Progressive | $1,854 | $1,598 | $3,587 |
| GEICO | $3,395 | $2,858 | $3,929 |
Best Car Insurance Providers in New Orleans
Here’s your chance to look at the best car insurance companies in New Orleans. These options should be at the top of your list if you’re making a switch.
- Rideshare drivers
1. Best Overall: State Farm
State Farm consistently ranks among insurers — it has the highest customer satisfaction in New Orleans. The company gives you a suite of discounts for family and finances. You can opt for an accident-free discount, a good driving discount and a vehicle safety discount and more.
You can even cut costs and avoid a high premium if you have a poor driving record. State Farm offers a discount once you’ve completed a defensive driving course. Obeying traffic laws and avoiding accidents for 3 years will also lower your rate.
State Farm offers deep discounts and affordable insurance plans, whether you’re looking for state minimum, standard or full coverages.
2. Cheapest Car Insurance in New Orleans: Southern Farm Bureau
Thinking about how to lower your car insurance? It might be time to go with Southern Farm Bureau. The company offers competitive pricing with some of the best rates across the board in our New Orleans review.
We found affordable rates and plans for drivers with a credit score of 580 or higher. Even people with less-than-stellar credit can find a low price.
Southern Farm Bureau stacks on the savings with plenty of discount options. You can even save up to 30% on your total premium when you check your driving with the Driveology plugin.
- Active military members
3. Best for Military Personnel: USAA
USAA offers auto and home insurance policies to members of the military and their immediate families. Service members and veterans can get some of the best discounts in New Orleans.
USAA prides itself on superior customer service and plans that tailor to the needs of service families. You can customize your policy and payments to coordinate with a deployment or your military income.
These options also help you if you’re on a fixed income. You can also bundle in life insurance or homeowners insurance to save even more with USAA.
Get the Best Insurance in the Big Easy
How do you get the lowest possible car insurance rate for your family? Your best strategy involves taking plenty of time to make a reliable comparison. Most people do far more research on the car they buy than the insurance they get to protect it. Often, last-minute searches cause people to overpay for coverage when a better rate is available.
Investing a little more upfront time might save you some significant cash. You should do your best to get more than 1 quote and speak to several agents. Ask how you and your family can qualify for more discounts. And remember, checking the competition for better pricing never hurts, even if you’ve already locked in on an insurance provider.
Frequently Asked Questions
How does my personal credit play a role?
Insurance carriers run an insurance credit score to help determine policy premiums. As mentioned earlier, these two numbers work together. Your insurance rates will likely be lower if you have an excellent credit score. On the other hand, your insurance rates may be higher if you have a poor credit score. Insurance companies believe credit scores are an indicator of whether you’ll make your insurance payments on time and credit scores combined with other data can be predictive of risk. Check out the best companies for all credit scores now.
What kind of discounts are usually available?
The most common discounts available are multi-policy and auto-pay, but every company is different. Other discounts that are widely available are loyalty, good student and anti-theft device discounts. See our top providers with the best discounts and get a unique quote.
By law, what types of car insurance do I have to have?
(almost all — not NH) All states require you to carry liability insurance on your vehicle. Your state may require additional auto insurance coverage. Limits are expressed: Amount for injuries per person/amount for injuries total per accident/amount for property damage per accident. These keep you legal to drive on the road. However, there may not be enough coverage should you get into a major accident.
*Quotes were obtained using the following profile: base 2015 Toyota Camry, male, 40-years-old. Policies reflect state minimum coverage options. We make every effort to provide the most accurate quotes based on the profile above. Due to the many combined variables involved in insurance quotes, the only way to get an accurate quote is to enter your own information through our partners' secure websites.