Buying car insurance in New Orleans, Louisiana, can be costly. The city is one of the most expensive in the country for car insurance, but if you know how to shop around, you can find affordable rates.
Car Insurance Requirements in New Orleans
Before buying car insurance in New Orleans, Louisiana, it is important to know the requirements. Louisiana requires all drivers to carry a minimum of:
- $15,000 bodily injury liability per person
- $30,000 bodily injury liability per accident
- $25,000 property damage liability per accident
Bodily injury is a type of insurance that only protects other drivers and passengers if you cause a car accident. For this reason, many drivers choose to add on additional insurance policies. Sometimes referred to as a full coverage policy, this often includes things like comprehensive and collision insurance. If you drive a vehicle in New Orleans with a high value, or you have an auto loan on it, you may want a full coverage insurance policy.
In addition to the minimums, all drivers in Louisiana must also carry proof of insurance at all times. Proof must be available if a police officer requests it or when renewing your vehicle’s registration.
How Much Is Car Insurance in New Orleans, Louisiana?
The cost of car insurance in New Orleans, Louisiana, varies depending on many factors, like your age, gender, driving record, and the vehicle make and model that you drive. However, on average, the cost of car insurance in New Orleans, Louisiana, is higher than the national and state average. In fact, according to MoneyGeek, New Orleans is the second most expensive city for insurance in the U.S.
The Zebra lists the average cost of insurance in New Orleans as $3735 per year which is significantly higher than the national average of $1548. Many factors go into New Orleans’ higher rates. New Orleans, Louisiana, ranks on things like:
- 197/300 most car thefts
- 20/50 most uninsured drivers
- 102/300 most rainy days
Additionally, Louisiana does not require drivers to carry personal injury protection. This means that many insurance providers increase rates to cover these costs. New Orleans is also at risk of flooding from thunderstorms or even hurricanes.
New Orleans, Louisiana, Car Insurance Providers
New Orleans, Louisiana, drivers have a lot of insurance options. Here are a few of the top providers to choose from:
- Allstate
- Ameriprise Financial
- Amica
- Esurance
- Nationwide
- State Farm
- The General
- Travelers
Insurance companies calculate their rates differently. This means you may receive very different quotes among providers.
How Age and Gender Affect Insurance in New Orleans, Louisiana
A driver’s age can have an impact on how much they pay for insurance. In New Orleans, Louisiana, drivers who are in their 50s usually receive the cheapest rates. Teenage drivers pay the highest rates, which is mostly due to their lack of experience. Even a driver’s gender can affect their rates. According to The Zebra, female drivers in New Orleans pay, on average, $198 more per year than males.
How a Car Accident Affects Insurance Rates
If you’re in an at-fault car accident, you will likely notice an increase in your insurance cost. Avoiding accidents altogether is one of the best ways to save on your insurance rates. Other things that can lead to an increase in rates include speeding tickets, reckless driving charges, and a DUI. The average cost of car insurance in New Orleans with a DUI is $5335 per year. A reckless driving charge can be as high as $5194.
Louisiana may also require drivers with a DUI to file an SR-22. This is a form that you file with the Motor Vehicle Department proving that you have car insurance.
How Your Credit Rating Affects Insurance Rates
Many insurance companies in New Orleans, Louisiana, take credit scores into account when calculating insurance rates. Improving your credit score from poor to excellent can save you as much as $2587 per year.
How Your Location Affects Insurance Rates
Where you live, even within New Orleans, Louisiana, will also affect your insurance rates. Drivers who live in an area with more traffic or higher theft rates can expect an increased rate. The most expensive zip codes in New Orleans include:
- 70146
- 70119
- 70116
- 70145
- 70117
This also means that some parts of New Orleans are cheaper. The cheapest zip codes in New Orleans, Louisiana, include:
- 70124
- 70115
- 70114
- 70118
- 70131
Drivers in more expensive cities may be able to offset some of these costs by parking in a garage or equipping their vehicles with anti-theft devices.
How to Get the Best Insurance Rates in New Orleans
Even with New Orleans being one of the most expensive cities for insurance in the U.S. there are ways that you can save on your rates, including:
- Ask about available discounts: Many insurance companies offer discounts, which can help you save a lot on your rates. Ask about insurance discounts like good driver discounts. New Orleans, Louisiana, is also home to a lot of colleges and universities that can qualify local students with good grades for a student discount.
- Shop around: Even if you already have car insurance, it is always a good idea to shop around. Insurance companies frequently increase rates and if yours does, shop around.
- Adjust your car insurance: As long as you carry the state’s minimum insurance requirements, you can decide how much additional insurance you want. Adjusting your levels can help you save.
- Avoid car accidents: Avoiding car accidents is one of the best ways to keep your car insurance rates affordable.
It is always a good idea to reevaluate your insurance needs every six months to ensure you have the best insurance rates.
Car insurance in New Orleans, Louisiana, can be more expensive than in other states. By shopping around and adjusting your rates, you can find an affordable insurance policy that meets your needs.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
Compare the Cheapest Car Insurance Quotes in New Orleans, LA | moneygeek.com
New Orleans, LA Car Insurance | thezebra.com
Full Coverage Insurance: Everything You Need to Know | caranddriver.com
Full Coverage Insurance Quotes: Everything You Need to Know | caranddriver.com
Car Insurance | caranddriver.com
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