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Cheapest Car Insurance in Louisiana 2021

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Louisiana is the most expensive state for car insurance in the entire U.S., costing an average of $2,711 per year for full coverage. It’s a far cry from the average cost of car insurance for the country, which is just $1,738 per year.

In 2018 alone, Louisiana drivers overpaid by more than $1,150 on their car insurance policies. That is more than the average cost of car insurance in some states. That’s why it is so critical to take your time shopping for the best cheap car insurance companies in Louisiana. At Bankrate, we monitor the latest reviews, ratings and rankings to find the best cheap car insurance in Louisiana that provides the coverage you need for your family at a price that you can afford.

The cheapest car insurance in Louisiana

There are several choices for Louisiana auto insurance, but the price for your coverage can vary significantly, depending on which provider you choose and whether you opt for a minimum coverage or full coverage policy. The cheapest car insurance in Louisiana for 2021 comes from Geico, Southern Farm Bureau, USAA, State Farm and Louisiana Farm Bureau for the most affordable policies.

Car Insurance CompanyAverage Annual Premium for Minimum CoverageAverage Annual Premium for Full Coverage
Geico$448$2,162
Southern Farm Bureau$450$1,874
USAA$592$2,073
State Farm$673$3,094
Louisiana Farm Bureau$799$2,594

Geico

Geico is not only great for cheap car insurance in Louisiana, but it is also fantastic for claims filing and support. There is excellent accessibility, so you don’t have to worry about a limited service area, and it boasts above-average scores for customer satisfaction. Opportunities for discounts include military, safety, good driver and student discounts.

Geico even supplies a helpful resource page for Louisiana drivers, so you know exactly what you need before you hit the road.

Southern Farm Bureau

To benefit from Southern Farm Bureau car insurance, you must be a member of your local Farm Bureau, but membership dues only range from $30 to $70 each year, making it well worth it for the cheap insurance costs. With an A+ rating from A.M. Best for financial stability, Southern Farm Bureau is available in six Southern states, including Arkansas, Colorado, Florida, Louisiana, Mississippi and South Carolina, with local agents to help with all of your auto insurance needs.

Southern Farm Bureau also offers special local insurance that’s available for Louisiana only, including rental car coverage, roadside assistance and personal umbrella coverage.

USAA

Headquartered in nearby San Antonio, Texas, USAA is a car insurance provider that is consistently top-rated for customer service and satisfaction with top ratings from J.D. Power. It is also known for some of the cheapest insurance rates in the U.S., with an excellent variety of insurance options.

USAA offers easy mobile tools and great resources for its members, but it is limited in its availability with few branches. It also is an insurance provider only for the military and veterans, as well as their families, with exclusive discounts specifically designed for its customers, such as savings for military base storage and deployment.

State Farm

State Farm consistently wins awards for its excellent mobile tools, making it easy to file claims and track them. There is excellent customer support available, as proven by its high customer ratings, and it receives an A++ rating from A.M. Best for financial stability.

State Farm’s cheap car insurance in Louisiana includes options for rental car coverage, travel expenses, roadside assistance and rideshare driver coverage. There are a ton of discounts, too, to take the sting out of those higher Louisiana rates, such as multi-policy, claims-free, safe driving and student discounts.

Louisiana Farm Bureau

Louisiana Farm Bureau is best for accessibility, bringing a local agent to your doorstep with a neighborhood Farm Bureau location to service each Louisiana parish. You must be a member of a cooperating Farm Bureau organization, which requires an affordable annual membership.

The options for coverage are great, with additional insurance for personal injury protection (PIP), medical payments, uninsured/underinsured motorist coverage and roadside assistance. You can still benefit from the typical Louisiana car insurance discounts like safe driver, good student and claims-free discounts,

Affordable coverage for Louisiana drivers

Like most states, Louisiana requires that you carry a minimum amount of car insurance, which includes liability insurance.

The minimum insurance coverage for Louisiana includes the following:

  • $15,000 bodily injury liability per person
  • $30,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

You also have the option to purchase or reject the following state-recommended coverage:

  • $1,000 medical payments
  • $15,000 uninsured motorist bodily injury per person
  • $30,000 uninsured motorist bodily injury per accident

While this is the minimum insurance required by the state, it is always a good idea to purchase additional insurance coverage to reduce your out-of-pocket expenses after an accident. This is because the minimum required insurance for the state often does not cover the full expenses of an accident, meaning that you’d be required to pay the rest of the costs yourself if you’re found to be at-fault.

How to get cheap car insurance in Louisiana

While car insurance is expensive for Louisiana drivers, there are a few tips you can use to lower your total insurance premiums.

Shop around.

The best cheap car insurance providers in Louisiana may vary, depending on things like the kind of car insurance that you need and the type of vehicle that you drive. Because of this, you’re going to want to compare rates from multiple companies to determine which has the best rates for you. Additionally, you’ll want to review discounts that are available to you to make sure that you’re taking advantage of the lowest rates you can get.

Work on your credit score.

In all but four states, insurance providers may use your credit score to determine your car insurance rates. For example, car insurance for drivers with bad credit is likely to be much more expensive than car insurance for drivers with great credit. So for this, work on lowering your credit score to decrease your premiums.

Increase your deductible.

Your car insurance deductible determines how much you have to pay out of pocket when you are in an accident. Your insurance company may require you to pay a significant sum upfront before your insurance coverage kicks in to pay for the rest of the damages. One way to lower your car insurance premium is to raise your deductible, but just be prepared to pay a higher upfront sum if the unthinkable occurs.

Bundle policies.

Many insurance companies offer loyalty discounts when you maintain more than one active insurance policy. To save extra money on your car insurance, consider adding your homeowners insurance, renters insurance and life insurance to the same provider for even more savings.

Take advantage of discounts.

There are many other ways to save on your car insurance, too. Consider common discounts like safe driver or student driver discounts. If you have a good credit history or a claims-free history, you could be eligible for extra savings. Many car insurance providers also offer exclusive discounts for military members and low mileage drivers. Be sure to take advantage of the best auto insurance discounts wherever you can so you can save extra money on your policy.

Frequently asked questions

What is the best car insurance in Louisiana?

The best car insurance for you depends on a variety of factors, including the car you drive, your accidents history and how much you’re willing to pay. We regularly update our expert analysis to feature the latest company rankings, reviews and offerings for each auto insurance provider. The best car insurance in Louisiana is provided by Alfa, Auto-Owners, Erie, Geico and USAA.

What is the average cost of car insurance in the U.S.?

The Insurance Information Institute reports that in 2017, the average expenditure for auto insurance was highest in Louisiana, costing $1,443.72 for the year. Louisiana is by far the most expensive state for car insurance in the United States, based on reporting by the National Association of Insurance Commissioners (NAIC).

What factors impact the cost of my Louisiana car insurance?

The cost of car insurance is different for everyone because it is based on several unique factors. Insurance providers will evaluate risk based on where you live, the kind of car you drive, your driving history, your credit score and how many claims you have filed in the past. Not all providers weigh each factor the same, however, which is why it is so important to shop around to make sure you receive the best deal.

Methodology

Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a cleaning driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually.

These are sample rates and should be used for comparative purposes only. Your quotes may be different.

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If You Want Consumers to Lose, Network Regulation is a Must – Digital Transactions

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After the current U.S. Congress was sworn in, a predictable chorus of merchants, lobbyists, and lawmakers demanded new interchange price caps and other government mandates to decrease credit card interchange fees for merchants. The tired attacks on credit cards are an easy narrative that focuses almost exclusively on the cost side of the ledger, while completely ignoring the cards’ important role in the economy and the regressive effects of interchange regulation. 

To lawmakers blindly acting on behalf of retailers, regulation is a brilliant idea—regardless of how it affects their constituents. For decades, they have promised these interventions would eventually benefit consumers. But the lessons from the Durbin Amendment in the United States and price cap regulation in Australia is clear. Although some policymakers bemoan the current economic model, arbitrarily “cutting” rates for the sake of cuts completely ignores the economic reality that as billions of dollars move to merchants, billions are lost by consumers. 

For the uninitiated, let’s break down what credit interchange funds: 1) the cost of fraud; 2) more than $40 billion in consumers rewards; 3) the cost of nonpayment by consumers, which is typically 4% of revolving credit; 4) more than $300 billion in credit floats to U.S. consumers; and 5) drastically higher “ticket lift” for merchants. 

Johnson: “To lawmakers blindly acting on behalf of retailers, regulation is a brilliant idea—regardless of how it affects their constituents.”

These are just some of the benefits. If costs were all that mattered, American Express wouldn’t exist. Until recently, it was by far the most expensive U.S. network. Yet, merchants still took AmEx because they knew the average AmEx “swipe” was around $140, far more than Visa and Mastercard. 

Put simply, for a few basis points, interchange functions as a small insurance policy to safeguard retailers from the threat of fraud and nonpayment by consumers. Consider the amount of ink spilled on interchange when no one mentions that the chargeoff rate for issuing banks on bad credit card debt exceeds credit interchange.

Looking abroad, interchange opponents cite Australia, which halved interchange fees nearly 20 years ago, as a glowing example of how to regulate credit cards. In truth, Australia’s regulations have harmed consumers, reduced their options, and forced Australians to pay more for less appealing credit card products. 

First, the cost of a basic credit card is $60 USD in many Australian banks. How many millions of Americans would lose access to credit if the annual cost went from $0 to $60? Can you imagine the consumer outrage? 

In a two-sided market like credit cards, any regulated shift to one side acts a massive tax on the other. For Australians, the new tax fell on cardholders. There, annual fees for standard cards rose by nearly 25%, according to an analysis by global consulting firm CRA International. Fees for rewards cards skyrocketed by as much as 77%.

Many no-fee credit cards were no longer financially viable. As a result, they were pulled from the market, leaving lower income Australians, as well as young people working to establish credit, with few viable options in the credit card market.

Even the benefits that lead many people to sign up for credit cards in the first place have been substantially diluted in Australia because of the reduction of interchange fees. In fact, the value of rewards points fell by approximately 23% after the country cut interchange fees.

Efforts to add interchange price caps would have a similar effect here in the U.S. A 50% cut would amount to a $40 billion to $50 billion wealth transfer from consumers and issuers to merchants. For the 20 million or so financially marginalized Americans, what will their access to credit be when issuers find a $50 billion hole in their balance sheets? 

The average American generates $167 per year in rewards, according to the Consumer Financial Protection Bureau. Perks like airline miles, hotel points, and cashback rewards would be decimated and would likely be just the province of the rich after regulation. Many middle-class consumers could say goodbye to family vacations booked at almost no cost thanks to credit card rewards.

As the travel industry and retailers fight to bounce back from the impact of the pandemic, slashing consumer rewards and reducing the attractiveness of already-fragile businesses is the last thing lawmakers and regulators in Washington should undertake.

Proposals to follow Australia’s misguided lead in capping interchange may allow retailers to snatch a few extra basis points, but the consequences would be disastrous for consumers. Cards would simply be less valuable and more expensive for Americans, and millions of consumers would lose access to credit. University of Pennsylvania Professor Natasha Sarin estimates debit price caps alone cost consumers $3 billion. How much more would consumers have to pay under Durbin 2.0?

Members of Congress and other leaders should learn from Australia and Durbin 1.0 to avoid making the same mistake twice.

—Drew Johnson is a senior fellow at the National Center for Public Policy Research, Washington, D.C.

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Increase Your Credit Score With Michael Carrington

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More than ever before, your debt and credit records can negatively impact you or your family’s life if left unmanaged. Sadly, many Americans feel entirely helpless about their credit score’s present state and the steps they need to take to fix a less-than-perfect score. This is where Michael Carrington, founder of Tier 1 Credit Specialist, comes in. Michael is determined to offer thousands of Americans an educated, informed approach towards credit restoration.

Michael understands the plight that having a bad credit score can bring into your life. His first financial industry job was working as a home mortgage loan analyst for one of the nation’s largest lenders. Early on, he had to work a grueling schedule which included several jobs seven days a week while putting in almost 12-hour days to make $5,000 monthly to get by barely.

“I was tired of living a mediocre life and was determined to increase the value that I can offer others through my knowledge of the finance industry – I started reading all of the necessary books, networking with industry professionals, and investing in mentorship,” shares Michael Carrington. “I got my break when I was able to grow a seven-figure credit repair and funding organization that is flexible enough to address the financial needs of thousands of Americans.”

With his vast experience in the business world, establishing himself as a well-respected business leader, Michael Carrington felt he had the power to help millions of Americas in restoring their credit. Michael learned the FICO system, stayed up to date on the Fair Credit Reporting Act (FCRA), found ways to improve his credit score, and started showing others.

The Tier 1 Credit Specialist uses a tested and proven approach to educate their clients on everything credit scores. Michael is leveraging his experience as a home mortgage professional, marketing executive, and global business coach to inform his clients. He and his team take their time to carefully go through their client’s credit records as they try to find the root of their problem and find suitable financial solutions.

The company is changing lives all over America as it helps families and individuals to repair their credit scores, gain access to lower interest rates on loans and get better jobs. What Tier 1 Credit Specialists is offering many Americans is a chance at financial freedom.

Michael Carrington has repaired over $8 million in debt write-ups and has helped fund American’s with over $4 million through thousands of fixed reports. “I credit our success to being people-focused,” he often says. “The amount of success that we create is going to be in direct proportion to the amount of value that we provide people – not just our customers – people.”

Because of its ‘people-focused goals, the Tier 1 Credit Specialist is determined to help millions of Americans achieve financial literacy. It is currently receiving raving reviews from clients who are completely happy with the credit repair solutions that the company has provided them.

Today, Michael Carrington is continuing with a new initiative to serve more Americans who suffer from bad credit due to little or no access to affordable resources for repair.

The Tier 1 Credit Socialist brand is changing the outlook of many families across America. To do this, the company has created an affiliate system that will provide more people with ways of earning during these tough economic times.

As a well-respected international business leader and entrepreneur with numerous achievements to his name Michael Carrington aims to help millions of Americans achieve the financial freedom, he is experiencing today. Tier 1 Credit Socialist is one of the most effective credit repair brands on the market right now, and they have no plans for slowing down in 2021!

Learn more about Michael Carrington by visiting his Instagram account or checking out the Tier 1 Credit Specialist website.

Published April 17th, 2021



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Does Having a Bank Account With an Issuer Make Credit Card Approval Easier?

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Better the risk you know than the one you don’t.

When it comes to personal finance, nothing is guaranteed. That goes double for credit. That’s why, no matter how perfect your credit or how many times you’ve applied for a new credit card, there’s always that moment of doubt while you wait for a decision.

Issuing banks look at a wide range of factors when making a decision — and your credit score is only one of them. They look at your entire credit history, and consider things like your income and even your history with the bank itself.

For example, if you defaulted on a credit card with a given bank 15 years ago, that mistake is likely long gone from your credit reports. To you and the three major credit bureaus, it is ancient history. But banks are like elephants — they never forget. And that mistake could be enough to stop your approval.

But does it go the other way, too? Does having a bank account that’s in good standing with an issuer make you more likely to get approved? While there’s no clear-cut answer, there are a few cases when it could help.

A good relationship may weigh in your favor

Credit card issuers rarely come right out and say much about their approval processes, so we often have to rely on anecdotal evidence to get an idea of what works. That said, you can find a number of stories of folks who have been approved for a credit card they were previously denied for after they opened a savings or checking account with the issuer.

These types of stories are more common at the extreme ends of the card range. If you have a borderline bad credit score, for instance, having a long, positive banking history with the issuer — like no overdrafts or other problems — may weigh in your favor when applying for a credit card. That’s because the bank is able to see that you have regular income and don’t overspend.

Similarly, a healthy savings or investment account with a bank could be a helpful factor when applying for a high-end rewards credit card. This allows the bank to see that you can afford its product and that you have the type of funds required to put some serious spend on it.

Having a good banking relationship with an issuer can be particularly helpful when the economy is questionable and banks are tightening their proverbial pursestrings. When trying to minimize risk, going with applicants you’ve known for years simply makes more sense than starting fresh with a stranger.

Some banks provide targeted offers

Another way having a previous banking relationship with an issuer can help is when you can receive targeted credit card offers. These are sort of like invitations to apply for a card that the bank thinks will be a good fit for you. While approval for targeted offers is still not guaranteed, some types of targeted offers can be almost as good.

For example, the only confirmed way to get around Chase’s 5/24 rule (which is that any card application will be automatically denied if you’ve opened five or more cards in the last 24 months) is to receive a special “just for you” offer through your online Chase account. When these offers show up — they’re marked with a special black star — they will generally lead to an approval, no matter what your current 5/24 status.

Credit unions require membership

For the most part, you aren’t usually required to have a bank account with a particular issuer to get a credit card with that bank. However, there is one big exception: credit unions. Due to the different structure of a credit union vs. a bank, credit unions only offer their products to current members of the credit union.

To become a member, you need to actually have a stake in that credit union. In most cases, this is done by opening a savings account and maintaining a small balance — $5 is a common minimum.

You can only apply for a credit union credit card once you’ve joined, so a bank account is an actual requirement in this case. That said, your chances of being approved once you’re a member aren’t necessarily impacted by how much money you have in the account.

In general, while having a bank account with an issuer may be helpful in some cases, it’s not a cure-all for bad credit. Your credit history will always have more impact than your banking history when it comes to getting approved for a credit card.

For more information on bad credit, check out our guide to learn how to rebuild your credit.

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