New Orleans, LA Car Insurance
How much does car insurance cost in New Orleans?
To get insured in New Orleans, expect to pay an average of $2,043 for a six-month auto insurance policy, which amounts to approximately $341 per month. For 2023, our data indicates that USAA offers the least expensive car insurance rates in New Orleans at $1,206 for a six-month policy. However, it's essential to note that you may not qualify for USAA coverage, so read further to explore other economical options if you're seeking auto insurance in New Orleans.
New Orleans is a city where car insurance rates exceed the Louisiana average, coming in at roughly $1,336 every six months. Additionally, these rates are higher than the national average of $742 every six months. It's worth noting that approximately 40% of customers in New Orleans feel that their premiums are too steep. Whether you're among this group or you simply want to learn more about the car insurance options available to you, keep reading to find out what factors influence New Orleans rates and what the typical prices look like.
| Car Insurance in New Orleans vs. Louisiana | Avg. 6 Mo. Premium |
|---|---|
| Louisiana Average | $1,336 |
| New Orleans Average | $2,043 |
The cheapest car insurance companies in New Orleans
A six-month policy with USAA costs $1,206 or $201 per month.
Southern Farm Bureau is the second-cheapest company in New Orleans with policies starting at $1,540 for six months.
GEICO takes third place in New Orleans with average monthly premiums at $260 ($1,561 every six months).
The Zebra's key takeaways about car insurance in New Orleans:
- The average cost of a car insurance policy in New Orleans is $2,043 per six-month policy — $341 per month.
- The cheapest company in New Orleans is USAA ($1,206).
- New Orleans ranks as the most expensive city for car insurance in Louisiana.
- 40% of Zebra customers in New Orleans stated they used our product because they were paying too much for car insurance with their current provider.
Are you paying too much for auto insurance?
New Orleans car insurance rates by company
The 2023 data shows that USAA is the best option for affordable comprehensive auto insurance in New Orleans, Louisiana. Their rates start at $201 per month or $1,206 per six-month policy, which is the lowest in the market. Southern Farm Bureau is the second cheapest, charging $257 per month or $1,540 for a six-month policy. Each company offers a range of insurance coverage options, but be aware that certain businesses may have specific eligibility requirements or price differences based on your profile.
For additional information about the top-rated car insurance companies, check out The Zebra's Customer Satisfaction Survey.
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Cheapest car insurance companies in New Orleans, LA
| Company | Avg. 6 Mo. Premium |
|---|---|
| USAA | $1,206 |
| Southern Farm Bureau | $1,540 |
| GEICO | $1,561 |
| State Farm | $1,961 |
| Safeway | $2,247 |
| Progressive | $2,659 |
| MetLife | $2,720 |
| Allstate | $3,618 |
The Zebra’s Dynamic Insurance Rating Tool data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
Shop around for the best rates
When looking for affordable car insurance that meets your needs, it's important to do some research and compare rates. Our user-friendly comparison tools can do the heavy lifting for you, giving you the freedom to select the coverage that suits you best. Input your ZIP code to view rates from top providers like Progressive, State Farm, and Allstate, and find the top and most affordable car insurance in New Orleans.
Average car insurance in New Orleans by rating factor
It can be tough to find a car insurance company that's just right because it needs to give you enough coverage without costing too much. Most companies use similar rating factors, but each one has its own approach. Some might care more about your credit score, while others might be more interested in your past claims.
To make sure you're always getting the best rates, you should get new quotes every six months to a year.
Q: I didn't have an accident — Why is my insurance going up?
A:Â New Orleans car insurance rates are greatly influenced by end-of-year earnings, which weigh the revenue earned from premiums against the cost of paying out claims to insured drivers. Despite having a clean driving record, you may still be subject to higher rates from certain insurers due to the escalating cost of conducting business in the region.
Auto insurance premiums by age in New Orleans
One of the most critical variables considered when calculating insurance premiums is age. Insurance companies use data to establish the probability of drivers getting into accidents or making claims. Unfortunately, teenage drivers have the highest accident rate compared to any other age group. As a result, they are charged the highest premiums. In New Orleans, for instance, teenage drivers pay up to $4,135 more in premiums compared to drivers in their 20s.
Teen driver insurance may appear unaffordable or prejudiced, but insurance companies are in the business of mitigating risk. As teenagers pose the highest risk, insurers charge them more to offset the cost of potential claims.
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Cheapest car insurance companies for teen drivers in New Orleans, LA
| Company | Avg. 6 Mo. Premium |
|---|---|
| USAA | $3,381 |
| Southern Farm Bureau | $4,149 |
| GEICO | $4,452 |
| Safeway | $5,615 |
| State Farm | $5,935 |
| Allstate | $7,697 |
| MetLife | $10,452 |
| Progressive | $13,576 |
Zebra Tip:Â The cheapest companies for New Orleans drivers between 20-40 are USAA, Southern Farm Bureau, and GEICO
The majority of New Orleans drivers, as indicated by our data, are aged between 20-29. They typically pay $2,677 every six months. These providers have the potential to reduce costs by up to 31%.
Auto insurance premiums for minimum coverage in New Orleans
The amount of coverage you select plays a crucial role in determining your insurance premiums. Our data shows that a significant portion, 33% of New Orleans drivers have opted for minimum coverage. Although the state law requires drivers to have a specific amount of coverage, choosing the bare minimum may leave you underinsured if you need to file a claim.
If you add collision coverage or comprehensive coverage which are commonly referred to as "full coverage" when bought together, you'll end up paying more for your policy. Nevertheless, the added peace of mind these coverages offer can be priceless. Typically, you'll have to pay a deductible for these coverages, which can vary in amount and also impact your rate. If you select a higher deductible, your rates will be less expensive, whereas a lower deductible will result in a higher policy cost.
Roadside assistance and uninsured motorist coverage are also important to consider, as they can protect you from drivers who are uninsured or underinsured. While these extras will increase your insurance premium, The Zebra recommends them because they offer an additional layer of protection for you in the future.
Q: Can I lower my car insurance coverage?
A: Possibly — if your vehicle is paid off.
Based on our data analysis, 55% of drivers in New Orleans have owned vehicles. If you're not leasing or financing your car, it might be worth considering whether dropping comprehensive or collision coverage is the right decision for you. Obtaining the actual cash value of your vehicle through a trusted source like Kelley Blue Book is strongly recommended. Typically, if your car is worth less than $4,000, collision coverage may not be necessary. It's worth noting, however, that if you do choose to drop these coverages, you'll be responsible for any repair expenses if you're involved in an accident.
Cheapest car insurance companies for minimum coverage in New Orleans, LA
| Company | Avg. 6 Mo. Premium |
|---|---|
| GEICO | $341 |
| USAA | $426 |
| Southern Farm Bureau | $570 |
| State Farm | $582 |
| Progressive | $811 |
| Allstate | $862 |
| Safeway | $1,049 |
| MetLife | $1,444 |
- Minimum: State liability coverage only
- Basic: State liability + collision and comprehensive (full) coverage
- Better: Better liability limits at 50/100/50. Full coverage included with towing and rental car benefits. May include additional personal medical benefits and uninsured/underinsured motorist coverage.
- Best: Best liability limits at 100/300/50. Full coverage included with better towing and rental car benefits and better personal medical benefits and increased uninsured/underinsured coverage.
Most of our customers in New Orleans opt for the basic level of coverage, but this may not be the best option for everyone. While we understand state minimum coverage is a budget-friendly solution, it does leave you at risk for damages that exceed your liability limits. Louisiana's 15/30/25 liability limits provide coverage for damage you cause up to $15,000 per person in bodily injury, $30,000 per accident in bodily injury and $25,000 for property damage. While this may be sufficient for most standard car accidents, it might not be for bodily injury claims or multi-vehicle accidents.
Learn more about insurance laws in Louisiana.
New Orleans car insurance rates by credit score
When determining premiums, credit score is a major factor in many states, including Louisiana. Insurers weigh this metric alongside age and driving history to determine the risk you pose. You may be curious about why credit score matters so much. Past data shows that individuals with poor credit scores are more likely to file claims, have gaps in their coverage, and take part in risky driving behaviors. Hence, insurers consider good credit scores as an indicator of less risky behavior, resulting in cheaper insurance rates. If you want to decrease your auto insurance premiums, improving your credit score is a viable option.
In New Orleans, drivers with a credit score of 300-579 pay 136% more than those with scores of 800-850, according to our data. The majority of New Orleans drivers have a credit score categorized as "Good." For the 2023 credit tier, our data indicates that USAA or State Farm offer the most affordable insurance options.
Cheapest car insurance companies for bad credit in New Orleans, LA
| Company | Avg. 6 Mo. Premium |
|---|---|
| GEICO | $2,030 |
| USAA | $2,113 |
| Safeway | $2,247 |
| Southern Farm Bureau | $2,926 |
| Allstate | $4,386 |
| Progressive | $5,121 |
| MetLife | $6,458 |
| State Farm | $9,020 |
Zebra Tip: If you recently improved your credit score, shop around for car insurance!
New Orleans drivers with "Poor" credit can expect to pay over $3,000 more annually for car insurance than those with "Fair" credit, according to our data. If you've recently taken steps to improve your credit score, you may be able to save on your car insurance. Check your preferred credit monitoring software to see if your efforts have paid off.
Auto insurance rates with an at-fault accident
Claims resulting from collisions are the most commonly filed. In New Orleans, a single at-fault accident during 2023 led to a 46% surge in the average monthly car insurance rates, which rose from $341 to $497. Following such an accident, the least expensive insurance provider in New Orleans is USAA, with Southern Farm Bureau offering similar savings.
Regardless of your location, the best way to maintain affordable auto insurance rates is by having a clean driving record free of citations and accidents. Rate increases are caused by DUIs and DWIs, reckless driving charges, at-fault accidents, and speeding citations. While the duration of the impact on your premium varies depending on the type of citation or accident, DUIs and DWIs tend to have a longer-lasting effect.
Cheapest car insurance companies after an at-fault accident in New Orleans, LA
| Company | Avg. 6 Mo. Premium |
|---|---|
| USAA | $1,755 |
| Southern Farm Bureau | $1,824 |
| GEICO | $2,370 |
| State Farm | $2,373 |
| Safeway | $2,790 |
| MetLife | $4,462 |
| Allstate | $4,590 |
| Progressive | $4,665 |
New Orleans car insurance rates by violation
Below you can see how much different violations and claims will increase your rate in New Orleans.
Car insurance rate increases after violations and citations in New Orleans, LA
Why is car insurance in New Orleans so expensive?
It's no secret that auto insurance can be expensive in New Orleans, and there are several reasons why. The cost of living in the city is higher than in other Louisiana cities, and insurers must charge higher premiums to make up for the difference. Factors like coverage levels, driving records, and credit scores play a role in determining rates, but other factors also come into play.
In this article, we'll delve into why auto insurance can be expensive in New Orleans, even if you're a safe driver.
Much like other large cities, New Orleans has areas that are more prone to crime, theft, and uninsured drivers than others. If you live in a high-crime neighborhood, you'll likely pay more for auto insurance than if you lived in a different part of the city.
The good news is that auto insurance rates in New Orleans don't vary too much from one ZIP code to another. While one may be slightly higher, the difference is usually only a few dollars.
New Orleans was the sight of one of the most devastating hurricanes in the country in recent decades. Its proximity to the gulf and the presence of high winds make this city particularly vulnerable to extreme weather like hurricanes.Â
Damage incurred from high winds, flooding and other weather-related damage can cause insurance companies to pay out exorbitant amounts in claims. New Orleans' increased risk of these losses makes it expensive for insurance companies to do business there, resulting in raised rates for drivers.Â
Comprehensive coverage protects your vehicle against perils like these. New Orleans residents with new or nice vehicles should consider adding comprehensive coverage to their policy to avoid paying for damages out of pocket.
New Orleans' larger population, in contrast to more rural parts of Louisiana, means that there are more cars on the road. More cars lead to more accidents in general. The expenses related to accident claims are usually passed on to other drivers in the area through increased premiums — this is also the case for safe or infrequent drivers.
Based on our records, about 65% of drivers in New Orleans do not currently have insurance. If you happen to have an accident with an uninsured driver in New Orleans, you may have to cover the entire repair cost yourself.
Zebra Tip: Use your comprehensive coverage to protect your vehicle against hurricanes
Damage caused by weather-related events is covered under comprehensive coverage. If you're worried about flooding or other weather-related events damaging your vehicle, consider if this coverage is right for you.
Bundling insurance policies in New Orleans
While car insurance rates continue to increase, there are still ways to help make your auto coverage more affordable. When shopping for a new policy, one way to save money is by bundling your homeowners or renters insurance with your car insurance. By bundling, you can potentially save up to 10% on combined premiums. Learn more about how bundling home and car insurance can help you save money, regardless of your location.
If you have separate policies for your car and home insurance, consider consolidating them to save money. Compare rates from different insurance companies to find out which one offers the best deal on bundling your policies.
Cheapest car insurance companies for bundling home and auto insurance in New Orleans, LA
| Company | Avg. 6 Mo. Premium |
|---|---|
| USAA | $1,156 |
| Southern Farm Bureau | $1,365 |
| GEICO | $1,484 |
| State Farm | $1,669 |
| Safeway | $2,149 |
| Progressive | $2,372 |
| MetLife | $2,575 |
| Allstate | $3,268 |
Despite being unable to control your insurance rates, the optimal approach to finding inexpensive auto insurance is to compare quotes from various companies. It can be challenging to find a rate that provides sufficient coverage without compromising your budget. Keep personal factors in mind, such as moving, aging, or improving your credit score, to see if you can save money.
Bear in mind that certain companies are more expensive than others, so take the time to look around and locate the one that is the best fit for you.
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Frequently asked questions
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.