When it comes to car insurance costs in the United States, some states stand out for having much higher premiums than others. In 2025, Louisiana is widely recognized as the most expensive state for car insurance.
Why Is Louisiana So Expensive?
Several factors contribute to Louisiana’s high car insurance rates:
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High Accident Rates: Louisiana has one of the highest numbers of car accidents per capita in the country.
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Frequent Weather Damage: The state experiences hurricanes and flooding, which raise repair and claims costs.
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Litigation and Fraud: Lawsuits related to car accidents and insurance fraud are more common, increasing insurer expenses.
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High Crime Rates: Auto theft and vandalism rates are relatively high.
How Expensive Is It?
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The average annual premium for full coverage in Louisiana can exceed $3,600, much higher than the national average of around $2,800.
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This translates to about $300 per month, making insurance a significant budget item for many residents.
What Can Drivers Do?
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Shop Around: Rates vary between insurers, so comparing quotes is essential.
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Maintain a Clean Record: Safe driving helps keep premiums down.
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Increase Deductibles: Choosing a higher deductible can lower monthly payments.
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Look for Discounts: Many insurers offer savings for good students, bundling policies, or having safety devices.