Have you ever wondered why Louisiana residents pay as much as double on their car insurance premiums than other states? Compounded with obvious factors such as poor roads, flooding, and severe weather, there are some factors that may surprise you. For example, according to a recent article in nola.com, a typical Louisiana driver with a good driving record overpays about $1200 a year more than they should because they do not shop around for a better rate. This places our citizens in the highest bracket in the country for car insurance premiums, according to Gabi, an insurance comparison app.
On top of everything, Louisiana has one of the highest instances of uninsured or underinsured motorists in the country. Uninsured motorists drive up car insurance premiums for everyone because drivers who keep their insurance current must bear the brunt of filling in the coverage gaps for uninsured motorists by paying higher monthly premiums.
There are other nationwide considerations that also affect Louisiana drivers. Across the U.S., distracted driving caused by cell phones have negatively impacted everyone’s premiums due to increased accidents. A tendency toward more expensive vehicles in the last few decades also drastically alters the bottom line for everyone, because your coverage must not only protect your property, but the property of those vehicles on the road.
Competition in the market also accounts for nationwide pricing. For example, Maine’s extremely competitive car insurance market drives their premiums down to some of the lowest averages in the nation.
What’s the best way to make sure you have the coverage you need at the best possible price? Shop around, experts say. Even drivers in the least expensive markets tend to overpay by showing blind loyalty to their insurance companies because they do not feel it is worth the hassle of switching companies, or at a minimum, do not know that they are actually overpaying.
In 2018, Louisiana had the second highest car insurance premiums in the country. The good news is that many insurers are working together in unprecedented ways using artificial intelligence to lower the car insurance rates Louisiana drivers must cough up every month. Three of the top car insurance companies in the country have announced that they have lowered or in some cases will be lowering car insurance rates by several percentage points, a move that will save over one million motorists money.