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Louisiana Factors that Affect Insurance Rates

Auto insurance is required for every driver and every vehicle in the state of Louisiana. Drivers are required to carry auto liability insurance at a minimum, and many motorists also choose to add additional elements to their policies as well. As a necessary monthly expenditure, car insurance is something all of us ought to have a better handle on. Specific key factors go into the determination of the prices you pay for vehicle insurance. Knowing and understanding these factors can open your eyes to some of the different ways you can save money as a LA policy holder.

Driver Age and Gender

Both age and gender play prominent roles in the calculation of auto insurance premiums in Louisiana. Young drivers pay more for their coverage than any other age group. Unmarried men under the age of 25 pay the most of any age based demographic, and women under 21 pay age based surcharges as well. The statistical risk of young drivers getting into accidents and other claim situations is higher than it is for older drivers. Their claims also tend to be more costly on average than those made by other drivers.

Older drivers also see age based differences in their rates. Senior drivers over 50 or 55 can get senior discounts, but older senior drivers tend to give beck those savings and then some. Drivers in their seventies and above pay higher rates due to increased accident rates, and after age 80 their rates get really high.

Home Address of Insured Car

The home address in Louisiana where the insured vehicle is parked at night also influences auto insurance rates. Cars in urban areas cost more for comprehensive and collision coverage. With high traffic volumes there is more of an accident risk every time you take to the road. And with more people per square mile there's a higher risk of theft, vandalism and other comprehensive risks.

By contrast, cars residing in rural or sparsely populated suburban areas encounter much lighter traffic patterns, resulting in a lowered risk of collision. And with lower populations come fewer chances to run into car thieves, vandals, and other assorted risks covered by comprehensive auto insurance. Thus, the zip code where you live plays a large role in determining your Louisiana auto insurance premiums.

Make and Model of Car

On top of the location where the insured car is kept, the characteristics of the car itself are also important to auto insurers. Some makes and models are more expensive to insure, because of high replacement cost, higher accident rates, inferior crash test performance, higher theft rates, and so on. On the lower end of the cost scale are economical vehicles that are impervious to theft, perform well in crashes, are less expensive to repair or replace, and are less likely to be involved in accidents. These and other specific attributes of your Louisiana car can either help or hurt your cause as you try to find cheap insurance.

Elected Limits and Deductibles

The limits and deductibles you choose for your policy will also have a significant effect on the bottom line. Limits of coverage are quote simply the maximum financial value of any particular area of your policy. Out of those limits, the deductibles are the part for which you are responsible as a policy holder. There are policies you can get with certain no deductible coverage areas, but as a general rule a deductible cost is to be expected when you make a claim against your Louisiana car insurance plan. The lower the deductible, the less out of pocket cost, but the higher your rates will be. The higher the deductible, the larger out of pocket cost in a claim, but the lower your premiums will be.

Driving Record

Like all these other factors, driving record is very important to your overall rates. Perhaps it does not deserve to be listed last, because with a poor driving record, you will have a very difficult time getting affordable coverage. With accidents and tickets on your record, you demonstrate to insurers that you are a high for future accidents and tickets. Past performance is extremely important to insurers. If you have recent claims or citations, do your best to avoid them in the future by abiding by the rules of the road, driving defensively and exercising caution every time you get behind the wheel.

No two Louisiana auto insurance policies are exactly alike, and it is clear that the reason for this is that there are so many different variables involved in the determination of rates and eligibility for programs. Take the time to learn more and find out about some of the things you can do to improve your own Louisiana car insurance rates.


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