There is no formal insurance assistance program in Louisiana to help low-income drivers obtain affordable car insurance. The best ways to find affordable car insurance on a tight budget are to compare quotes and apply for discounts.
Louisiana car insurance costs
are some of the highest in the nation. The Pelican State's high car insurance
rates are predominantly caused by bad roads and a lot of claims for personal injuries. You can avoid high rates by keeping a good driving record, raising your deductible, or getting a quote from the right company. Let’s dive in.Compare insurance quotes from 50+ carriers with Jerry in under 45 seconds
Compare insurance quotes from 50+ carriers with Jerry in under 45 seconds
4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ drivers Does Louisiana have auto insurance for low-income individuals and families?
There is no car insurance assistance program in Louisiana for low-income divers and families
. Because car insurance premiums in Louisiana are significantly higher than the national average, this can make shopping for a policy difficult. What is the cheapest car insurance company in Louisiana?
State Farm
, GEICO
, and Allstate
all have some of the best car insurance rates in Louisiana, which makes them viable options for drivers with low incomes. However, the rates charged by different insurance companies will vary, and the premiums you’ll be quoted will change depending on your driving record and demographics, too. You should shop around and compare rates from multiple companies to find the best car insurance provider in Louisiana that suits your needs at the lowest possible cost. That company could be one of the ones listed above, or it could be Progressive
, Nationwide
, USAA
—or a smaller provider that doesn't have the name recognition of the big brands! | Car Insurance Companies | Full-coverage Annual Rate | Minimum-coverage Annual Rate |
|---|
| Progressive | $1,786 | $1,374 |
Cheap car insurance for low-income students in Louisiana
Young drivers, particularly teen drivers
, pay some of Louisiana's highest annual premiums. You won’t find that your rates go down significantly until you hit around age 25. Insurance companies see inexperienced drivers as a higher risk, but those who qualify for discounts like good student discounts can make their premiums more reasonable.
| Car Insurance Companies | Full-coverage Annual Rate | Minimum-coverage Annual Rate |
|---|
| Aspire Advantage | $2,111 | $1,738 |
| Progressive | $3,502 | $1,518 |
| National General | $3,148 | $1,855 |
Clearcover | $2,656 | $1,399 |
| Anchor General | $1,767 | $1,657 |
| Allstate | $2,822 | $1,319 |
| Bristol West | $2,529 | $1,910 |
| Dairyland | $2,185 | $1,704 |
| Infinity | $1,955 | $1,786 |
| Travelers | $764 | $2,967 |
| Nationwide | $2,985 | $1,367 |
| Mapfre | $2,343 | $1,011 |
| Safeco | $3,215 | $2,839 |
| Mercury | $2,514 | $1,066 |
| Kemper | $2,451 | $1,364 |
| Encompass | $4,376 | $3,366 |
| Plymouth Rock | $4,290 | $3,300 |
Electric | $4,542 | $3,494 |
| The General | $2,976 | $2,289 |
| AAA | $1,742 | $1,340 |
MORE: How to get cheap car insurance for young drivers
Cheap car insurance for low-income seniors in Louisiana
Once drivers hit 65, their premiums will rise again; the risks associated with declining vision and slower response times lead to higher premiums for older drivers.
If you’re a good driver, you should still be able to find affordable coverage options that fit your budget, especially with a company that offers a safe driver discount
or affordable options for low-mileage drivers. Check out the table below to see how your rates might change later in life. | Car Insurance Companies | Full-coverage Annual Rate | Minimum-coverage Annual Rate |
|---|
| Aspire Advantage | $1,229 | $1,096 |
| National General | $976 | $1,188 |
| Allstate | $982 | $1,478 |
| Anchor General | $1,357 | $1,259 |
| Progressive | $2,457 | $1,487 |
| Bristol West | $1,930 | $1,528 |
| Travelers | $2,079 | $1,599 |
Clearcover | $2,496 | $1,576 |
| Infinity | $1,335 | $1,304 |
| Dairyland | $2,524 | $1,381 |
| Nationwide | $879 | $2,253 |
| Encompass | $2,444 | $1,880 |
| Mapfre | $1,959 | $1,507 |
| Safeco | $2,915 | $2,242 |
| Kemper | $2,330 | $1,792 |
Cheap car insurance for low-income drivers with bad credit in Louisiana
Like many other things, auto insurance rates rise as credit scores fall. The yearly premium you pay is based on the perceived risk you pose to the insurance company. (Having low or poor credit is often interpreted as you being risky to insure.)
If you work on improving your credit history by reducing your debt and making on-time payments, you may be able to get cheaper insurance. Use the following table to estimate how much your premiums might change if your credit score increases.
| Car Insurance Companies | Great(750-850) | Good(600-750) | Fair(500-600) | Poor(300-500) |
|---|
| Progressive | $1,990 | $2,097 | $2,217 | $2,463 |
| Allstate | $2,143 | $2,259 | $2,387 | $2,652 |
Clearcover | $1,839 | $1,938 | $2,048 | $2,275 |
| National General | $1,900 | $2,002 | $2,116 | $2,351 |
| Safeco | $2,693 | $2,839 | $3,001 | $3,333 |
| Travelers | $2,005 | $2,113 | $2,233 | $2,481 |
| Bristol West | $3,016 | $3,180 | $3,361 | $3,733 |
| Nationwide | $2,292 | $2,416 | $2,554 | $2,837 |
| State Auto | $2,189 | $2,307 | $2,438 | $2,709 |
| Encompass | $2,663 | $2,807 | $2,967 | $3,296 |
| Mapfre | $1,302 | $1,372 | $1,451 | $1,611 |
| Kemper | $1,382 | $1,457 | $1,540 | $1,711 |
| Plymouth Rock | $1,871 | $1,972 | $2,084 | $2,315 |
Oregon Mutual | $1,854 | $1,954 | $2,066 | $2,295 |
| Mercury | $1,388 | $1,463 | $1,546 | $1,718 |
Electric | $1,088 | $1,147 | $1,212 | $1,347 |
Cheap car insurance for low-income drivers with violations in Louisiana
A DUI
, texting while driving
, or even multiple speeding tickets
can cause your insurance costs to rise. If you have enough points on your license, you may be classified as a high-risk driver, making finding a cheap policy practically impossible. The Louisiana Department of Public Safety Office of Motor Vehicles requires certain high-risk drivers
to carry SR-22 insurance
, which consists of a policy that meets the state's minimum requirements and an SR-22 certificate filed with the department. You can't skip getting an SR-22, which is required to have your license reinstated, so you should look for a company that will work with you and offers a lower rate. Along with USAA and State Farm, Louisiana Farm Bureau is one of the best auto insurers in the state for drivers with violations.
| Car Insurance Companies | Reckless Driving | Speeding | DUI | Failure to Obey Traffic Sign | Improper Passing |
|---|
| Aspire Advantage | $1,331 | $1,678 | $1,220 | $1,537 | $1,512 |
| National General | $1,614 | $1,441 | $1,142 | $1,372 | $1,208 |
| Bristol West | $2,037 | $1,959 | $1,555 | $1,843 | $2,206 |
| Progressive | $1,668 | $1,290 | $1,116 | $1,410 | $2,712 |
| Anchor General | $1,252 | $1,869 | $1,446 | $2,009 | $1,812 |
| Allstate | $1,444 | $1,149 | $914 | $1,541 | $1,383 |
Clearcover | $1,488 | $1,268 | $1,331 | $1,363 | $1,488 |
| Dairyland | $1,633 | $1,616 | $1,171 | $1,971 | $1,633 |
| Infinity | $1,682 | $1,518 | $1,206 | $1,719 | $1,691 |
| Nationwide | $1,198 | $1,484 | $947 | $1,238 | $1,198 |
| Mapfre | $1,003 | $1,107 | $1,003 | $1,808 | $1,003 |
| Mercury | $1,637 | $1,531 | $1,637 | $1,637 | $1,637 |
| Travelers | $1,362 | $1,160 | $1,362 | $1,362 | $1,362 |
| Safeco | $1,535 | $1,535 | $1,535 | $1,376 | $1,535 |
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What is the state minimum car insurance in Louisiana?
If you're driving in Louisiana, you need to carry proof of insurance with at least the following coverage amounts:
$30,000 of bodily injury liability coverage per accident
You can hit the road legally as long as you have that amount of insurance and a valid Louisiana driver's license
. Liability insurance vs. full coverage
In Louisiana, drivers are only required to carry liability insurance. In the event of an accident in which you are found at fault, your insurance company will, at a minimum, pay for the other driver's medical expenses and any damage done to their vehicles.
From there, two of the most essential types of insurance to add are collision coverage
and comprehensive coverage
. Collision insurance pays for damage to your car after any collision (with another vehicle or a stationary object), while comprehensive insurance covers damage to your car from unexpected non-collision perils like theft, vandalism, and hailstorms. The term "full-coverage car insurance policy" is commonly used to describe a policy that includes liability, comprehensive, and collision coverage at a minimum. Full coverage is ideal and may even be required for leased new or financed vehicles. Other types of coverage, such as uninsured motorist coverage
or personal injury protection (PIP)
, can be added to a full-coverage policy. While full coverage insurance provides greater protection for your car—which is why lenders often mandate it when you finance your vehicle—it also costs more each month, making it difficult for low-income drivers to obtain.
What affects the cost of car insurance in Louisiana?
In Louisiana, other factors besides coverage limits contribute to your premium. Your rates may increase if you have a low credit score, have been in an accident or have traffic violations on your driving record, or live in a high-crime area. Things that are completely out of your control, like your age or sex, can also have an impact.
You can find the best rates on car insurance in Louisiana by shopping around and comparing quotes from multiple providers, as each company has its unique formula for determining your premium.
Consequences of driving without insurance in Louisiana
You might be tempted to go without auto insurance, like the approximate 14% of Louisiana drivers who have no insurance (at least partially thanks to the state's high insurance costs).
This is not a foolproof method, unfortunately. It could save you money in the short term, but it will lead to two major problems down the road:
Without car insurance, you'll be in deep financial trouble after an accident, no matter who was at fault. The first $25,000 in property damage and the first $15,000 in personal injuries are not recoverable under Louisiana's "No Pay, No Play" law, regardless of who was at fault for the accident.
There are several penalties, starting with a $500-1,000 fine if you do not provide proof of insurance when stopped by police or within three days. You could also get a ticket for driving without insurance, have your car impounded and your license revoked, and face extra fines and fees.
A second offense within five years of a prior violation carries even harsher penalties, and even a single lapse in insurance coverage
can lead to higher premiums in the future. If you can't afford minimum liability insurance, it's best to contact your insurer right away and see what discounts you can take advantage of, set a higher deductible, shop around for a new policy, or consider taking public transportation instead of driving.
10 easy ways to get low-income auto insurance in Louisiana
Searching for low-cost auto insurance coverage in Louisiana? If you want to save money without taking any unnecessary risks, try using the methods outlined below.
1. Drive less
Lessening your mileage driven each year is one of the simplest ways to cut down on insurance costs. Many insurance companies offer reduced premiums to drivers who log fewer miles per year.
If you don't drive much, getting pay-per-mile insurance
could help you save money on your premiums. And one more advantage? It's good for the planet. 2. Set up a telematics device
When you install a telematics device that can monitor your driving in real time and display good driving behaviors like gentle acceleration and staying within the speed limit, you may be rewarded by your insurance company with a discount for being a safe driver.
It's important to find an insurer that supports telematics discounts (like State Farm’s Drive Safe and Save
or Nationwide’s SmartRide
), as not all of the companies do. 3. Combine policies or reduce coverage on older cars
If you have several vehicles, you can save money by purchasing a multi-car insurance policy
. However, if your car is on the older side, you may want to reconsider your current level of coverage. It might not be worthwhile to maintain full coverage
on an older vehicle if you own it outright and it's only worth a couple thousand dollars (in which case major repairs would cost more than the worth of the vehicle itself). 4. Pay in full
Monthly, semi-annual, or annual payments are common options for paying auto insurance premiums. Your insurance company might offer you a discounted rate
if you pay your annual premium in one lump sum rather than in monthly installments. 5. Choose a monthly payment plan
At the same time, requesting monthly payments from your provider may also help to divide the total cost of a policy into more manageable chunks. While you may end up paying more in the long run than if you paid every six months or once per year, a monthly payment is the most cost-effective way to get car insurance with little money down.
6. Park in a garage
Drivers in larger cities like New Orleans
or Baton Rouge
will find this one particularly useful. Full-coverage insurance is more expensive if you don't have a garage because of the increased risk of theft and vandalism in areas with high crime rates and high traffic volumes. 7. Build your credit
Keep in mind that insurance premiums can go up or down depending on your credit rating. Your car-related monthly costs might decrease as you improve your credit.
MORE: How to build your credit without applying for a credit card
8. Raise your deductible
There is typically a deductible associated with collision and comprehensive coverage. It’s the amount of money that you agree to pay after a covered incident, and the insurance company will cover the rest. You can negotiate a lower premium with your insurer by agreeing to a higher deductible
—but only go up to an amount you could afford! 9. Pick lower coverage limits
If you can afford full coverage, it's almost always worthwhile—but that's not always an option. If you're truly looking to save money, keeping to state minimum liability limits
can ensure that your insurance prices are as low as possible. 10. Compare multiple car insurance quotes
You might be shocked at the different rates different providers calculate for you even though your stats haven’t changed. Because each company calculates its rates differently, switching to a new provider could result in major savings!
“When we added a new car to our family, we were shocked at how high our current insurer was going to hike our rates. We used Jerry
for some comparison shopping and are now saving around $1000 a year. Thank you, Jerry!” —Darius P.
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