Cheapest Car Insurance for Low-Income Drivers in Louisiana (October 2024)

Louisiana Farm Bureau offers the cheapest rate for individual drivers with low income and poor credit history at $70 per month. State Farm is the most affordable provider for families with low income, offering a rate of $146 per month.

Louisiana does not offer state-backed car insurance programs for families and individuals with low income. Finding the provider with the most affordable rate is one option to manage costs. There are also ways to get discounts to help alleviate the cost of car insurance. Minimum coverage will also help you drive legally, but there are downsides to this type of coverage. For example, minimum coverage may not cover all damages in an at-fault accident, leaving you financially vulnerable.

Car insurance companies in Louisiana do not consider income when calculating your car insurance rates. Instead, they look at factors like age, driving record, credit history and type of car. At-fault accidents and moving violations will increase your rates, so it's important to drive safely and maintain a clean record.

The best way to find the cheapest rates is to compare quotes from several insurance companies. If your budget is tight, a basic minimum coverage policy is often the cheapest way to stay legal on the road. Pay-per-mile insurance can also be the best option to save for drivers who rarely drive. MoneyGeek rounded up the cheapest insurers for drivers with low income in Louisiana to help you save.

To legally drive in Louisiana, you must carry minimum coverage car insurance that meets the state's requirements. This includes:

• $15,000 for bodily injury liability per person
• $30,000 for bodily injury liability per accident
• $25,000 for property damage liability per accident

Choosing a liability-only car insurance policy covers expenses for the other driver if you're at fault in an accident. However, it doesn't cover damages to your own vehicle. To protect your own car, consider a full coverage car insurance policy, which includes collision and comprehensive coverages. These coverages protect against various incidents, such as theft, vandalism and natural disasters.

Knowing the risks and benefits of each coverage type is crucial in choosing the right policy for your needs.

Credit history is crucial for drivers with low income as it can significantly impact car insurance premiums in Louisiana. A lower credit-based insurance score may signal higher risk to insurers, resulting in higher premiums. Maintaining a good credit history is essential for more affordable rates.

The cheapest car insurance companies for drivers with low income and poor credit in Louisiana are:

• Louisiana Farm Bureau: $845 per year; $70 per month
• GEICO: $852 per year; $71 per month

Drivers with good credit can get the cheapest car insurance in Louisiana from:

• Louisiana Farm Bureau: $471 per year; $39 per month
• GEICO: $586 per year; $49 per month

Ensuring you have state minimum coverage is important, as driving without insurance is illegal. In Louisiana, this is considered a misdemeanor and can lead to suspension of your driver’s license and vehicle registration and fines ranging from $175 to $1,000.

While your income doesn't affect car insurance rates, your family dynamic does. In Louisiana, a single parent's annual premium can be $843 higher than a married couple's with one teen. For a couple, the cost is notably less at $1,752 annually compared to $2,595 for a single parent.

The most affordable car insurance companies for a married couple with a teen in Louisiana are:

• State Farm: $1,752 per year; $146 per month
• GEICO: $1,867 per year; $156 per month

For a single parent with a teen, the cheapest options are:

• State Farm: $2,595 per year; $216 per month
• GEICO: $2,658 per year; $221 per month

Married couples enjoy lower rates, possibly due to perceived stability and shared responsibilities. On the other hand, single parents face steeper premiums. Keeping a solid credit score is key to securing these more affordable rates, highlighting the importance of financial health in managing car insurance costs.

Car insurance premiums generally decrease as you reach the early senior years, typically around age 55 to 65, especially if you have a clean driving record. The two cheapest car insurance for senior drivers with low income and poor credit history are:

• GEICO: $947 per year; $79 per month
• Louisiana Farm Bureau: $1,113 per year; $93 per month

After age 70, car insurance rates typically increase as older drivers are statistically considered higher risk. This trend continues each year, meaning premiums generally rise as seniors age. In Louisiana, specific laws or guidelines may apply to seniors getting car insurance.

Several factors influence car insurance rates in Louisiana. While your income doesn't directly affect rates, a low income might lead to a poor credit record, resulting in higher rates. Conversely, a good credit record can help lower your rates. Understanding the factors contributing to car insurance rates can help you make informed decisions when choosing the best car insurance for you.

Whether you qualify for state-sponsored programs or not, there are several strategies for finding affordable car insurance in Louisiana. Here are some tips to lower your car insurance premiums:

Finding affordable car insurance for drivers with low income in Louisiana can be challenging due to high rates. Get answers to common questions about low-income car insurance options in the Pelican State.