Louisiana May Have The Big Easy, But it’s Not So Easy for Teen Car Insurance
Lisa Steuer McArdle
Oct 14, 2021 · 3 min read
Louisiana is known for its amazing food, lively cities, and addictive music. But unfortunately, the state is also known for its expensive car insurance—especially for teens.
In fact, it’s one of the most expensive states for car insurance, according to our data at Jerry—and teens are hit the hardest.
Louisiana is at the top of the list, along with New York and Rhode Island. The least expensive were Iowa, Alabama, and North Carolina.
What Jerry's car insurance data says
Our data looked at drivers ages 16 to 19 with no violations, with Hawaii and Alaska excluded.
The data indicates that the average insurance monthly premium for teens in Louisiana is $627, which is over $400 more than its nearby friend Alabama.
The data also compared car insurance rates of retirees. While Louisiana wasn’t the most expensive for car insurance in this category, it was still up there compared to other states, with an average monthly premium of $236.
This is a significant jump from one of the least expensive states, Iowa, where it’s on average of $84 per month.
Why is car insurance more expensive for teens?
Teens tend to pay more for car insurance no matter where they live, because they are seen as a high-risk driving group.
In fact, according to the Centers for Disease Control and Prevention (CDC), the risk of motor vehicle crashes is higher for ages 16 to 19 than any other age group. Teens are almost three times more likely than drivers aged 20 and over to be involved in a fatal crash.
analyzed a study that showed teen drivers were two-and-a-half times more likely to participate in one or more risky behaviors when driving with a peer, than if they were driving alone. The same study found that the likelihood of risky behavior increased even further with multiple passengers in the car.
Car insurance in Louisiana
But is there something about Louisiana that makes car insurance more expensive there than in some other states?
According to NOLA.com, there may be a number of factors contributing to the expensive car insurance of Louisiana residents, including a high rate of uninsured drivers and a high rate of auto litigation.
The report also says that many Louisiana drivers who do have car insurance only have the minimum coverage. This means that many turn to the courts to get higher payouts in the case of a serious accident.
According to WalletHub, an increase in accidents is also leading to higher insurance rates, and there were approximately 770 fatal crashes in 2018, versus 740 fatal crashes in 2014.
Save with Jerry
No matter where you live or how old you are, Jerry can help save you money on car insurance.
The app compares quotes from up to 50 different insurance companies for you in under a minute, without any long forms to fill out.
Jerry will send you quotes that compare to your current coverage—and as a licensed broker, it takes care of your insurance needs from start to finish. The app also monitors your car insurance rate every six months on an ongoing basis.