Louisiana’s Auto Insurance Affordability Challenges Persist in 2022

Louisiana ranks as the least affordable state for personal auto insurance, according to a report from the Insurance Research Council (IRC). In 2022, drivers in the state spent an average of $1,588 per vehicle on premiums, nearly 40% higher than the national average and significantly more than other Southern states. While Florida’s premiums are slightly higher, its higher median income results in better affordability compared to Louisiana.

Several factors contribute to Louisiana’s high costs, including frequent injury claims, a high rate of underinsured motorists, and increased litigation. The state has also earned a reputation for a difficult litigation environment, receiving low scores in business fairness surveys and frequently appearing on the "Judicial Hellholes" list published by the American Tort Reform Association.

In the broader Southern region, low median incomes exacerbate the affordability issues of auto insurance, with Mississippi experiencing particular challenges due to its significantly lower household income compared to the national median. Louisiana’s struggles highlight the ongoing challenges of balancing premium costs with economic realities in a region marked by below-average income levels.