Louisiana car insurance rated fourth most expensive

Louisiana has the fourth costliest car insurance rates in the county, according to a new study by website Insure.com.

Facts

20 Best Insurance Companies

Insure.com scores carriers based on a survey of customer service, claims processing, value and other criteria.

1 - AAA Insurance 90.4

2 - USAA 87.5

3 - State Farm 87.2

4 - Erie Insurance 87.1

5 - (tie) Progressive 86.2

The Hartford 86.2

7 - The General 85.9

8 - Geico 85.7

9 - Nationwide 84.5

10 - MetLife 84.3

11 - Allstate 82.6

12 - Liberty Mutual 82.1

13 - Titan Insurance 82

14 - Farmers Insurance 81.4

15 - American Family 80.7

16 (tie) - Mercury 79.6

einsurance 79.6

18 - Travelers 78.7

19 - 21st Century 78.1

20 - Auto Club of S. California 77.9

On average, residents in the state are paying $1,842 a year for car insurance, compared to the $1,325 national average and $807 in the lowest-cost state of Maine.

“From what we’ve found, it appears Louisiana’s high car insurance rates stem in part from Louisiana’s litigious population, frequent natural disasters and high rate of uninsured motorists,” said Penny Gusner, Insure.com consumer analyst.

Louisiana residents are more eager to file claims than residents of other states, Gusner said.

If insurers have to pay out bigger settlements, they pass on the costs to all motorists.

Gusner said hurricanes, floodwater, tornadoes and hail result in many comprehensive claims, and insurers recoup their losses by raising future rates.

The uninsured rate in Louisiana is 13.9 percent, she said.

“Maine, our cheapest state, has a rate of uninsured drivers of only 4.7 percent,” she added. “When many drivers are uninsured, the drivers that are insured take on the burden of paying more for insurance since there are less drivers for the risk to be spread around.”

Louisiana’s minimum liability requirements aren’t abnormal, Gusner said.