Who Has Cheap Car Insurance Quotes for First-time Drivers in Louisiana?

Our editors keep telling us that when writing about car insurance, the words cheap or affordable should never be used as a descriptor for car insurance rates. Sad but true, cheap auto insurance for first-time drivers may be a thing of the past. Don’t let that discourage you, because we will tell you how you can still find and buy car insurance that works with your budget.

One of the more important criteria that is looked at to determine the cost of insurance is where you live in Louisiana. Areas with more people or even just a higher incidence of claims like New Orleans, Harvey, and Prairieville are more likely to pay higher prices, whereas areas with less crime or weather claims generally benefit from lower insurance rates.

The next table shows the most expensive areas in Louisiana for first-time drivers to buy auto insurance in.

Rate quotes are estimated as specific Louisiana garaging address can alter premiums greatly.

The car, truck, or SUV you are trying to insure is one of the main factors when comparing the cheapest coverage for first-time drivers. Vehicles with high performance engines, a lack of advanced safety features, or a track record of large liability claims will cost quite a bit more to insure than more modest models. The data below ranks car insurance costs for the cheapest vehicles to buy coverage for.

Data based on single female driver age 16, no speeding tickets, no at-fault accidents, $1000 deductibles, and Louisiana minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium amounts do not factor in specific location information which can decrease or increase premium rates substantially.

Data rating is based on single female driver age 16, no speeding tickets, no at-fault accidents, $1000 deductibles, and Louisiana minimum liability limits. Discounts applied include safe-driver, and claim-free. Estimates do not factor in specific Louisiana garaging location which can influence premium rates greatly.

Data variables include single female driver age 16, no speeding tickets, no at-fault accidents, $1000 deductibles, and Louisiana minimum liability limits. Discounts applied include claim-free, and safe-driver. Information does not factor in vehicle location which can decrease or increase premiums greatly.

Full coverage versus liability-only in Louisiana

Finding cheap car insurance for first-time drivers in Louisiana should be important to the majority of people, and one of the best ways to buy cheaper insurance is to buy liability only. The diagram below shows the comparison of yearly insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. Data assumes no tickets, no at-fault accidents, $500 deductibles, single marital status, and no discounts are taken into consideration.

On average, comp and collision coverage costs an additional $2,182 per year more than just insuring for liability. At some point, about every driver wonders if paying for full coverage is worth it. There is no definitive formula to delete physical damage coverage, but there is a broad guideline. If the yearly cost of comp and collision coverage is more than 10% of the settlement you would receive from your company, then it’s probably a good time to buy liability coverage only.

For example, let’s pretend your vehicle’s book value is $4,000 and you have $1,000 deductibles. If your vehicle is destroyed, the most you would receive is $3,000 after paying your policy deductible. If you are paying over $300 a year for your policy with full coverage, then it may be the right time to buy liability only.

There are some cases where dropping full coverage is not financially feasible. If you haven’t paid off your loan, you are required to maintain full coverage to protect the lienholder’s interest in the vehicle. Also, if your savings is not enough to buy a different vehicle if your current one is totaled, you should keep full coverage.

Is the best company Progressive, Geico, Allstate, or State Farm?

When it comes to buying auto insurance for new drivers, some of the first companies to look at are Progressive, Geico, Allstate, and State Farm. When combined, they insure 48.5% of all car insurance policies in America. The next table illustrates ratings for price, service, and claims, in additional to some of the optional coverages offered by each company.