Why Louisiana car insurance is among the priciest

Louisiana car insurance is among the most expensive in the country because injury claims there are costly and frequently litigated, hurricanes and flooding drive up physical damage claims, and household incomes are lower than average, so premiums take a bigger bite. In NAIC data, Louisiana had the second highest average auto insurance expenditure in 2023, $1,754.03 per vehicle, and it had ranked first in 2019, 2020 and 2021. Lawmakers passed major changes to fault and damages rules in 2020 and 2025, several taking effect in 2025 and 2026.

How expensive Louisiana is

According to the NAIC Auto Insurance Database Report, Louisiana's average expenditure was $1,754.03 in 2023, up 12.6% from 2022 and well above the U.S. average of $1,281.92. Its combined average premium for liability, collision and comprehensive was $1,982.65, second only to Florida. Two coverage-level figures stand out for 2023:

• Average liability premium: $1,055.10, against $736.65 nationally.
• Average comprehensive coverage premium: $346.08, against $238.24 nationally, reflecting weather and theft exposure.

On affordability, Louisiana ranks last. The Insurance Research Council found that in 2022 Louisiana households spent 2.67% of median income per vehicle on auto insurance, the highest share of any state, against 1.51% nationally.

What Louisiana requires

Louisiana's minimum liability limits are 15/30/25: $15,000 per injured person, $30,000 per crash for injuries and $25,000 for property damage, as listed in the NAIC report's state law tables. That is low relative to the cost of injury claims, which means a serious crash can quickly exceed the at-fault driver's coverage. Check current rules with the Louisiana Department of Insurance.

Why claims cost so much

• Litigation: Louisiana's governor and insurance commissioner both put lawsuits at the center of the 2025 legislative session. Commissioner Tim Temple sponsored 20 insurance reform bills, according to Insurance Journal, while Governor Jeff Landry blamed both insurers and plaintiffs' lawyers for high rates.
• Old rules that favored larger claims: until 2020 a jury trial was available only when more than $50,000 was at stake, and until 2025 courts applied a presumption, from a 1991 case, that an injury was caused by the crash if the person had no prior history of it.
• Weather: hurricanes and flooding damage and total large numbers of vehicles, which falls on comprehensive coverage.
• Collision repair costs: in 2022 the average Louisiana collision claim was $7,126, near the national average of $7,191, but claims were more frequent: 6.14 per 100 insured cars versus 5.32 nationally (NAIC).

The 2020 Civil Justice Reform Act

Act 37 of the 2020 First Extraordinary Session (Louisiana Legislature digest):

• Lowered the threshold for a jury trial from $50,000 to $10,000.
• Barred telling the jury that insurance exists, or which insurer is involved, in most cases.
• Changed the collateral source rule so that, when a health insurer paid a contracted provider, recoverable past medical expenses generally track what was actually paid plus the patient's cost sharing, rather than the amount billed.

The 2025 reforms

The 2025 regular session produced several laws, verified against the Louisiana Legislature's official digests:

Governor Landry vetoed SB 111, which would have limited bad faith lawsuits against insurers, in June 2025 (Insurance Journal). Comparative fault rules are explained in comparative vs contributory negligence, and "no pay, no play" in no pay, no play laws.

What the reforms mean for drivers

Supporters, including the insurance commissioner, say these laws will lower claim costs and that premiums will follow, but rate effects take time to show up in filings, because injury claims from earlier crashes are still being settled under the old rules. Opponents argue the changes reduce compensation for injured people without guaranteeing lower premiums. For individual drivers, three changes matter now:

1. Driving uninsured is far riskier. Since August 1, 2025, an uninsured owner cannot recover the first $100,000 of their own damages from an at-fault driver. Keep continuous coverage; see what happens if your car insurance lapses.
2. Fault matters more from 2026. If you are found 51% or more at fault in a crash on or after January 1, 2026, you recover nothing. Document every crash carefully; see what to do after a car accident.
3. Your renewal notice shows what changed. Compare the prior and new premium printed on it, then shop; see why your premium went up at renewal with no claims.

How to lower your Louisiana premium

• Raise liability limits thoughtfully. The 15/30/25 minimum leaves you exposed; higher bodily injury liability limits cost more but protect your assets. The How much car insurance do I need? can help.
• Keep uninsured motorist coverage, since many at-fault drivers carry only the minimum or none.
• Weigh comprehensive deductibles against hurricane risk; a higher deductible saves money but costs more if a storm floods your car.
• Compare quotes with the car insurance quote comparison worksheet; insurers price Louisiana's legal changes differently.

Key takeaways

• Louisiana had the second highest average auto insurance spending in 2023 ($1,754.03) and the highest share of income spent on it in 2022.
• Costly, frequently litigated injury claims, weather losses and lower incomes drive the problem.
• The 2020 reform lowered the jury trial threshold to $10,000; 2025 laws added a 51% fault bar, a $100,000 no-pay-no-play rule and repealed the Housley presumption.
• Minimum limits of 15/30/25 are low relative to claim costs, so higher liability and uninsured motorist coverage are worth pricing.