Car Insurance Requirements in New Orleans: What’s Legally Required?
12 June 2025
4 Mins Read
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Are you living in a big city like New Orleans? Well, it always comes with some unique charms, whether it is just the vibrant music scene or the amazing cuisine.
However, there is one factor that one must never overlook: getting proper car insurance in New Orleans.
Amid the heavy traffic, driving challenges, or the unexpected weather events—you have all the right to know about how the laws or the cheapest car insurance New Orleans. Learn about the right protection that matters more than you think!
Car Insurance In New Orleans: What Are the Minimum Requirements?
The Louisiana law mainly requires the drivers to carry the liability insurance with the minimum coverage value of:
- $15,000 for injury or death of a person
- $30,000 for injury or death of more than one person
- $25,000 for property damage
However, there is one thing that you must understand: the minimum value may often feel less when you are dealing with an actual accident. The medical costs themselves can quickly exceed $15,000.
On the other hand, the property damage limit can surpass the $25,000 value—especially if there are a decent number of vehicles in your city.
What Is The Cost Of Car Insurance In New Orleans?
The car insurance in New Orleans is slightly higher than the national average rate. The full coverage car insurance policy costs around $ 3,953, while the average minimum rate is approximately $ 1,014 per year.
Now, the car insurance can be personalised based on your needs and necessities. I would still suggest that you see the average rates when you are shopping in New Orleans.
The premium value may differ based on the city, state, driving record, and all the other necessary factors.
On average, the full coverage car insurance in Louisiana costs around $329 per month. As for the lowest value, you may have to pay $85 per month for the car premiums.
What Is The Cheapest Minimum Car Insurance Coverage New Orleans?
Car insurance in New Orleans is also available at the most affordable coverage rates, as USAA, Southern Farm Bureau, and State Farm offer it. These most affordable car insurance policies mainly include collision, comprehensive, and required liability coverage.
The full coverage in New Orleans car insurance is higher than the other national coverage rates, yet some providers can offer you the cheapest rates.
| Company | Median annual rate |
|---|---|
| GEICO | $4,857 |
| Louisiana Farm Bureau | $5,126 |
| Southern Farm Bureau | $5,041 |
| Progressive | $5,741 |
| State Farm | $7,776 |
| Auto Club of SoCal | $7,728 |
| Allstate | $8,144 |
| Farmers | $9,109 |
| USAA (only available to the military, veterans and their families) | $3,410 |
Factors That Can Affect the Cost Of Car Insurance In New Orleans
The cost of car insurance can never be the same. There will always be some sort of factors that can strongly affect the coverage rates. Some of these factors are:
Location
Any type of insurance rates will always vary based on the city or the location you reside in. Population density, overall climate, or the frequency of claims can make an impact on how much you are going to pay for your automobile.
Credit History
Do you have a good credit record? In that case, it is gonna be a huge scope for you to lower the insurance rate. Thus, the finance experts always talk about why it is crucial to manage your credit history.
It shows how reliable and responsible you are when it comes to your financial affairs. So, try not to mess it up!
Pay your credits right on time! Or the lower credit value can make a huge impact on how much you are paying as a premium.
Driving Record
If you have been involved in a recent car accident, received a speeding ticket, or driven your car while under the influence, it will continue to accumulate on your record. So watch out! Just be a responsible driver, that’s it!
These violation records often lead to a high rate of premiums for car insurance in New Orleans. As a result, you may end up paying higher rates for your car insurance.
Age
Typically, drivers who are old enough and have more experience driving often pay less for car insurance in New Orleans. Teens and young adults may have to pay more than older individuals.
Marital Status
Well, the married drivers always pay lower rates than single drivers in Louisiana. For example, a married couple might pay an average of $130, or around $160 per year, more than a single driver.
Vehicle Type
The type of vehicle affects your overall premium value. A new car is often more expensive to repair. This is why you may have to pay more for car insurance.
Car Insurance In New Orleans: The Laws That Come With It!
There are specific Louisiana laws related to car insurance. If you are a local and bought a car for your daily commute, these are the laws that you must know!
No Pay, No Play” Car Insurance Law
Let’s say you are not covered under any sort of car insurance. Now, if you get into any kind of car accident, the Louisiana “no pay, no play” car insurance law would prevent you from collecting two things:
- $25,000 for property damage
- $15,000 for personal injury costs
This can happen regardless of who has caused the accident. Now, if you are in an accident and the law finds that you are not at fault, you will still have to cover your own medical costs and damage repairs since you are “uninsured”!
Diminished Value Car Insurance Law
Louisiana state can allow you to receive compensation. Yes! The law may allow you to collect compensation from the insurance company of the driver who is at fault, as long as you do not exceed the total car value.
The law gives you the entitlement to the damages that cover the pre- and post-accidental value of your own vehicle.
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