Car Insurance Rates Rise in Louisiana

15 May Car Insurance Rates Rise in Louisiana

Drivers in Louisiana can expect their car insurance rates to rise for yet another year in 2018. Depending on your insurer, your rates could go up a lot or very little. Rates keep rising based on a number of factors.

• Louisiana has a high rate of uninsured drivers on the road.
• many others carry the absolute minimum coverage.
• distracted driving
• cheap gas. This encourages people to drive more, are causing more accidents, leading to rising rates nationwide.

40 percent of Louisiana drivers get by with the minimum allowable coverage. Most people cannot afford a better option and 15 percent drive uninsured completely.

The Louisiana Department of Insurance last year approved double-digit rate hikes for at least five insurers that either took effect in late 2017 or will kick in sometime this year. Certain policies under Progressive and Allstate are included in that group.

If you live in the New Orleans or Baton Rouge areas, your rate hike will be higher. On average,  it is about 25 percent higher in the metro areas, where a large chunk of the state’s auto litigation originates.

This makes New Orleans one of the most expensive places in one of most expensive states in the country to buy car insurance. In fact, in 2017, Louisiana was second only to Michigan for pricey car insurance rates.

If you are facing a big increase, consider shopping around for a new policy. Insurers in Louisiana are only allowed one rate increase a year. More insurers are offering so-called “usage-based insurance,” which uses odometer readings or in-vehicle devices to measure how much a car is used, an option for those who don’t drive as often.

AWS has a dedicated staff that will help you find the best coverage for the best rate for your car. There is no need to worry about your insurance rate being too high with the help of AWS.