Shopping for auto insurance is never fun. The process can be time consuming and inconvenient. However, for those living in Louisiana, the process is even less appealing. Why? Louisiana has the highest auto insurance rates in the nation. Ouch!
Chance Ryan relays additional details in the article “Louisiana Has Nation’s Highest Auto Insurance Rates – Again.”
According to Ryan’s article, the average citizen of Louisiana is paying $2,699 annually for auto insurance. That’s $179 higher than the second most expensive state. However, it’s roughly $1,000 more per year than the national average of car insurance premiums. In the United States, individuals average just $1,500 a year for car insurance.Those numbers are a bitter pill for Louisiana residents to swallow.
A variety of factors influence the cost of auto insurance in a state. For example:
- Competition – how many insurance companies are in the state competing for the public’s business?
- Conditions – what are the driving and road conditions like in the state?
- Uninsured – how many uninsured drives does the state have?
- State insurance – how are the state insurance systems set up?
Of course, these aren’t the only factors. Car accidents and damage claims can also influence price. The study cited in Ryan’s report found that drivers in Louisiana who have car accidents file more injury claims than drivers in other states. That too could be influencing the premium rates.1
Blue Bunol, the general manager of a local auto insurance agency with 62 locations in Louisiana and Texas, said, “Louisiana faces issues with high insurance costs because of poor roads and natural disasters.”1
One thing to note is that an individual’s location within Louisiana can have a very strong impact on the auto insurance premium rate. For example, those in the New Orleans metropolitan area will face higher rates than those living in more rural areas. Blue Bunol also believes that the high level of alcohol consumption in Louisiana and specifically New Orleans contributes to the high costs of auto insurance.1
In order to get the best car insurance rate possible, be a safe driver. In addition, shop around. Take your time and compare multiple insurance companies until you find the one that best fits you, your needs, and your budget.
1http://www.wwltv.com/news/lafourche-terrebonne/Louisiana-has-nations-highest-auto-insurance-rates—again-203984451.html
