Louisiana Drivers Pay More for Car Insurance Than 48 Other States

LOUISIANA (KPEL News) - Insurance continues to be one of the biggest expenses for Louisiana families, and a recent study shows just how much more we're paying on average - and it's more than almost every other state.

A combination of poor infrastructure, a high percentage of uninsured drivers, an eager litigious climate, and other factors have us paying an average of $2,546 in annual premiums.

Get our free mobile app

Louisiana has more vehicle-related lawsuits than any other state in the region, which the Louisiana legislature has attempted to address with mixed success.

(Photo by Justin Sullivan/Getty Images)

The 10 States Paying the Most for Car Insurance

Rank	State	Average Annual Premium 2023
1	Florida	$2,560
2	Louisiana	$2,546
3	Delaware	$2,137
4	Michigan	$2,133
5	California	$2,115
6	Kentucky	$2,105
7	Missouri	$2,104
8	Nevada	$2,023
9	New York	$2,020
10	Nebraska	$2,018

Louisiana's average premiums are just below Florida's. According to the study by FINN, a car subscription provider, one of the main issues is the high number of uninsured and underinsured drivers.

Like Florida, Louisiana also has a large proportion of uninsured drivers at slightly more than 10%, pushing up premiums. Even drivers with insurance often only have minimum coverage, which won’t protect them from anything more than minor accidents. Drivers in The Pelican State are also highly litigious, with more vehicle-related lawsuits than any other region contributing to higher premiums.

The legislature has attempted to address the legal climate in Louisiana with a tort reform bill in 2021.

This study comes around the same time that State Farm approved a 17 percent rate increase for its customers in Louisiana.

The good news? Based on the research, premiums might actually fall. Louisiana’s average annual car premium cost is expected to reach $2,393 by 2033, which would make it the 11th highest in the nation, according to 10-year estimates in the study.