Why is Car Insurance So Expensive in Louisiana?

Last Updated on December 5, 2025

If you’ve ever looked at a list of the most expensive states for auto insurance, you may be surprised to see Louisiana consistently ranked near the top. For many years, Louisiana has been listed as the #1 or #2 most expensive state for car insurance in America.

Why does Louisiana pay so much more than other states—especially states with worse weather or larger urban populations? Below, we break down the factors driving high insurance prices in Louisiana.

Key Takeaways

• Louisiana ranks among the most expensive states for car insurance due to high claim frequency and severe claim payouts.
• The state sees more bodily injury claims than most other U.S. states, driving up insurer costs.
• A lawsuit-friendly legal environment increases settlement sizes, impacting premiums.
• High numbers of uninsured and underinsured drivers compound the problem

Why Do Louisianans Pay More for Car Insurance?

Car insurance rates are mostly driven by claim frequency and claim severity. In other words, it shows how often drivers file claims and how expensive those claims are.

Louisiana’s high rates aren’t due to snow, ice, or massive cities. Instead, they’re driven by:

• More frequent accident claims than in most states
• High bodily injury claim rates
• Large claim payouts driven by Louisiana’s legal system
• A high percentage of uninsured and underinsured drivers

States with harsh winters or heavy urban traffic often have higher claims, but Louisiana stands out because the claims that occur tend to be more expensive—and more likely to escalate into lawsuits.

According to USA Today and industry analysts, Louisiana’s most unique challenge is the combination of high accident frequency, large bodily injury claims, and a lawsuit-friendly environment. These factors force insurance companies to raise rates across the board.

Just How Much Does Car Insurance Cost in Louisiana?

Here are average auto insurance costs in Louisiana by age group:

And here are average insurance rates by city or town:

Louisiana Drivers File More Bodily Injury Claims

Even though Louisiana doesn’t deal with snow or ice, it still has one of the highest rates of bodily injury claims in the country. Bodily injury claims are extremely expensive for insurers—far more costly than simple property damage claims.

Several factors contribute to this:

• High lawsuit frequency: Many accident cases go before elected judges, who often rule in favor of consumers, not insurers.
• High accident frequency: Louisiana consistently ranks among the worst states for crash rates.
• Uninsured drivers: Nearly 14% of Louisiana drivers are uninsured.
• Underinsured drivers: About 40% carry only minimum coverage, leaving large gaps when accidents occur.

When at-fault drivers cannot afford to pay for the damage they cause, insurance companies must pick up the bill. Costs rise, and premiums follow.

The Legal Environment in Louisiana Drives Costs Up

Another major contributor to Louisiana’s high premiums is the state’s legal climate. Analysts point out that:

• Many lawsuits under $50,000 go directly to judges instead of juries
• Judges in Louisiana tend to be more sympathetic to claimants than insurers
• Settlements and payouts are often larger than the national average

When insurers pay out more money per claim, they must raise rates to compensate. Over years and decades, this pattern has pushed Louisiana into the top tier of expensive insurance states.

FAQs

Final Word: Why Is Car Insurance So Expensive in Louisiana?

Louisiana almost always ranks among the top five most expensive states for auto insurance—and often in the top two. Rates are high, not because of weather or driving conditions, but because of:

• More accidents
• More bodily injury claims
• More uninsured and underinsured drivers
• A legal system that encourages large payouts

All of these factors create a costly environment for insurers—one that ultimately results in higher premiums for drivers across the state.