News Summary
New Orleans has been ranked as the third most expensive city in the U.S. for auto insurance, with an annual premium averaging $6,674. This alarming trend reflects the state’s auto insurance challenges, with high premiums significantly influenced by hurricane activity, uninsured drivers, and crime rates. Local residents are encouraged to shop around for better rates as they face rising costs that threaten affordability across the region.
New Orleans has been ranked as the third most expensive city in the United States for auto insurance, with drivers paying an average of $6,674 annually. This staggering figure positions New Orleans behind only Hamtramck and Detroit in Michigan for the highest auto insurance costs. Concerningly, out of the 15 cities with the priciest auto insurance rates in the country, 11 are located in Louisiana, reflecting a troubling trend for residents in the state.
In addition to the high insurance rates within New Orleans itself, neighboring areas also face substantial auto insurance premiums. For instance, nearby Harvey has an average premium of $6,229, while Terrytown and Waggaman report averages of $6,227 and $6,130, respectively. Other cities, such as Marrero, Arabi, and Chalmette, feature similar high rates, contributing to a broader crisis in auto insurance affordability across the region.
Full coverage policies in New Orleans average $556 per month, which is more than double the costs seen in neighboring states and nearly quadruples the national average. Teenagers in the area could face even steeper costs, with premiums upwards of $10,800 annually. Moreover, drivers with a DUI on their records confront monthly premiums that can exceed $2,160. Even individuals with a clean driving record may find themselves paying significantly for coverage, as a 35-year-old with no violations still pays around $5,329 annually.
The high premiums are largely influenced by hurricane activity, as Louisiana is subject to significant hurricanes approximately every three years. The devastating effects of Hurricane Ida in 2021, which caused uninsured losses estimated at $18 billion, underscore the risks that affect local insurance rates. In addition to hurricane risks, direct action lawsuits allow crash victims to sue insurance companies directly, further inflating costs for all drivers in the metropolitan area.
A troubling trend in Louisiana is the significant proportion of uninsured drivers, ranging from 12% to 14% of all drivers. This reality contributes to escalating rates for those who do maintain insurance. Moreover, the New Orleans metro area’s struggles with crime, particularly vehicle theft, can adversely influence auto insurance costs across various communities. Medical expenses associated with auto accidents also rank high, further compounding premiums.
Orleans Parish accounts for nearly 10% of Louisiana’s traffic fatalities, exacerbated by congested roadways as residents commute to and from surrounding areas. This scenario paints a concerning picture, given that auto insurance premiums have experienced a dramatic surge from $2,949 in 2023 to $6,674 in 2025, demonstrating a remarkable 126% increase. Seven out of the top ten cities with the largest percentage increases in auto insurance rates find themselves in the New Orleans metro area.
An overwhelming gap in costs exists between New Orleans and cities with more manageable insurance rates, such as South Burlington, Vermont. In fact, Harvey residents pay $4,859 more than their counterparts in Vermont. Comparatively, New Orleans’ insurance rates are significantly higher than those in other Southern cities, positioning Louisiana’s insurance market as especially challenging for local residents.
These trends have led to the emergence of “insurance deserts,” where affordable coverage is increasingly difficult to find. Residents are encouraged to actively seek better rates, such as by shopping around or bundling insurance policies to cut costs. Former Louisiana Insurance Commissioner Jim Donelon has advised drivers to routinely compare rates from various insurers and keep an eye on changing legal reforms aimed at addressing the high costs and instability affecting both auto and property insurance.
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Additional Resources
- KPEL 965: New Orleans Highest Auto Insurance Rates
- Fox 8 Live: Property Insurance Louisiana
- KTBS: Car Insurance Rates in New Orleans
- Louisiana Illuminator: Landry Insurance Agenda
- Finance Buzz: Best Car Insurance in LA
- Wikipedia: Insurance in the United States
- Google Search: Auto Insurance Trends
- Google Scholar: Auto Insurance Louisiana
- Encyclopedia Britannica: Insurance
- Google News: Louisiana Auto Insurance
Author: STAFF HERE NEWORLEANS WRITER
The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
