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Louisiana Least Affordable for Auto Insurance

Frequency of auto accidents, claims and litigation are blamed.
November 26, 2018

Louisiana ranks number one on a list of least affordable states for auto insurance, according to a new study from the Insurance Research Council (IRC). One factor behind the high cost of insurance in Louisiana is the frequency of auto accidents and resulting insurance claims, the IRC said. In 2017, Louisiana had the highest bodily injury (BI) liability claim frequency in the country (1.75 claims per 100 insured vehicles, almost double the countrywide rate of 0.90 claims per 100 insured vehicles).

Another factor cited by the IRC is frequent claims and litigation, “the propensity of Louisiana claimants to hire attorneys and file lawsuits.” Among 2017 BI claims, 54% of Louisiana claimants hired attorneys, compared with 48% of claimants in other states. Moreover, Louisiana claimants were 60% more likely to file lawsuits (16% compared with 10% countrywide), the IRC said.

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