Why are insurance rates going up in Louisiana?
Insurance providers have pulled out of the state and those that remain are raising premiums after seeing numerous hurricanes hit the Gulf Coast since 2020.
Insurance companies are paying more for reinsurance due to the increasing frequency of natural disasters worldwide. Donelon confirmed that reinsurance rates are rising and that insurance companies will likely pass on some of that cost to policyholders in the form of higher rates.
Frequently Asked Questions. Why is homeowners insurance so high in Louisiana? Homeowners insurance is so high in Louisiana because of the catastrophic hurricanes that have hit the state over the last three years — depleting home insurance companies of reserves and forcing many into insolvency.
By design, Louisiana Citizens charges 10% above the most expensive policy in a given parish so as not to compete with the private market and to discourage homeowners from choosing Louisiana Citizens unless absolutely necessary.
Factors contributing to these elevated rates include a high incidence of uninsured drivers, abundant litigation, and unique geographic vulnerabilities. Louisiana's auto insurance rates have long stood above the national average. A significant factor is the state's high number of claims and the related litigation costs.
The bills are very similar. Both would repeal Louisiana's unique three-year rule, which is a current law that prohibits insurance companies from raising deductibles, canceling or not renewing homeowner policies that have been in effect for more than three years.
Allstate has the most expensive car insurance rate in the state, averaging $4,921 per year or about $410 monthly. Residents of New Orleans pay the most on average for car insurance, $4,320 per year or $360 per month.
In February of 2023, the Louisiana state legislature approved a $45 million incentive program aimed encouraging insurance companies to write new home policies and attracting new insurance companies to the market. It's expected to lighten the policy load on Citizens and reduce costs for homeowners.
- Shop around. ...
- Raise your deductible. ...
- Don't confuse what you paid for your house with rebuilding costs. ...
- Buy your home and auto policies from the same insurer. ...
- Make your home more disaster resistant. ...
- Improve your home security. ...
- Seek out other discounts.
| ASI | $48 | GET QUOTES |
|---|---|---|
| Travelers | $63 | GET QUOTES |
| Nationwide | $66 | GET QUOTES |
| Allstate | $69 | GET QUOTES |
| USAA | $82 | GET QUOTES |
How to lower car insurance in Louisiana?
Looking for a way to decrease your insurance rate? In many cases, you can get an insurance discount by taking a defensive driving or traffic safety class. By taking this class online, you may qualify for the discount.
The average cost of home insurance in Louisiana is $2,633 per year according to data sourced from Quadrant Information Services.
More homeowners choose State Farm for their home insurance than any other company. You could make the same choice. Get quick quote to see your insurance rates in New Orleans today.
The average rate increase from Progressive, which has about one-fifth of the market, was just over 10%. Allstate is going up by more than 18%, GEICO by more than 19% and USAA by nearly 34%.
In Louisiana, each vehicle is required to have 15/30/25 liability limits. Those limits provide payments of $15,000 for bodily injury to one person, $30,000 for bodily injury to more than one person in a single accident, and $25,000 coverage for damage to someone else's vehicle or other property.
| State | Average rate | Highest rate |
|---|---|---|
| Florida | $2,560 | $7,910 |
| Louisiana | $2,546 | $5,958 |
| Delaware | $2,137 | $7,679 |
| Michigan | $2,133 | $16,397 |
Louisiana residents with a good driving record generally see their car insurance premiums drop around age 25, and average rates continue to fall as policyholders age. However, around age 65, you will likely start to see your rates increase again.
| Reason for fee | Amount |
|---|---|
| Failure to provide proof of insurance within three days | $500-$1,000 |
| Lapsed insurance for 11-30 days | $125 |
| Lapsed insurance for 31-90 days | $275 |
| Lapsed insurance for more than 90 days | $525 |
The Louisiana new-car insurance grace period is 7 to 30 days in most cases. The new-car grace period is how long insured drivers are allowed to drive a newly purchased vehicle before adding it to an existing car insurance policy.
The average cost of car insurance in Louisiana is $3,625 per year for full coverage and $956 per year for minimum coverage. Auto policies are typically more expensive in Louisiana than they are nationwide, where full coverage averages $2,314 per year and minimum coverage averages $644 per year.
Who has the most reasonable car insurance rates?
USAA, Nationwide, Travelers, Erie, Geico and Progressive are the cheapest car insurance companies nationwide, according to our analysis.
Based on this, vehicles that are white or black are likely to cost more to insure, since they are more in demand colors. The color of your car can indirectly affect insurance rates in other ways too. Some vehicles are less likely to be stolen.
That's because the cost of items in your home will cost more than they did last year. As the price for appliances and equipment escalates, rates will adjust as well. The insurance industry references the Consumer Price Index to measure inflation and adjusts rates accordingly.
Best homeowners insurance companies in Louisiana for 2024. Based on Bankrate's research, USAA, Allstate, State Farm, The Hanover and Progressive are writing the best homeowners insurance in Louisiana. We'll just need your ZIP code to show you offers from home insurance carriers in your area.
Several factors are making homeowners insurance more expensive: The increase in the number and severity of hurricanes, floods, tornadoes and other harsh weather has led to a spike in claims in many parts of the country.
