Finding reliable, budget auto insurance is not always easy, and figuring out which insurers offer the lowest-priced insurance rates for low income drivers requires even more rate comparisons. Each company has a proprietary formula for determining rates in each state, so we need to take a look at the lowest cost insurance companies in New Orleans.
It’s a good idea to be aware that New Orleans insurance rates are determined by lots of factors which can significantly increase or decrease the price of your policy. Turning one year older, buying a home, or having an at-fault accident can produce rate changes resulting in some companies being more expensive than competitors.
Best Insurance Companies in Louisiana
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $1,642 |
| 2 | MetLife | $1,836 |
| 3 | Progressive | $1,946 |
| 4 | GEICO | $1,965 |
| 5 | Safeway | $2,154 |
| 6 | Southern Farm Bureau | $2,248 |
| 7 | California Casualty | $2,338 |
| 8 | State Farm | $2,431 |
| 9 | Safe Auto | $2,653 |
| 10 | Allstate | $3,035 |
| 11 | Encompass | $3,170 |
| 12 | Liberty Mutual | $3,645 |
| Get a Custom Quote Go | ||
USAA has some of the best car insurance rates in New Orleans at around $1,642 annually. This is $772 less than the average rate paid by Louisiana drivers of $2,414. MetLife, Progressive, GEICO, and Safeway also make the cut as some of the more affordable New Orleans, LA auto insurance companies.
In the above rates, if you currently have a policy with Safeway and switched to MetLife, you might realize savings of in the neighborhood of $318. Insureds with Southern Farm Bureau could save as much as $412 a year, and California Casualty customers might reduce rates by $502 a year.
Be aware that those estimates are averages across all drivers and vehicles and do not factor in a specific zip code for low income drivers. So the auto insurance company that can offer you the best price may not even be in the top 12 companies in the list above. That is why you need to get quotes using your own specific driver information and vehicle.
The vehicle model you are insuring is probably the most important factor when consumers are trying to find cheaper insurance for low income drivers. Vehicles with average performance, a great safety record, or a track record of few liability claims will cost significantly less to insure than adrenaline junky models. The next table showcases auto insurance rates for a handful of the cheaper vehicles to buy insurance for.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Explorer XLT 2WD | $2,745 |
| Ford Escape XLS 2WD | $2,762 |
| Honda CR-V EX-L 4WD | $2,833 |
| Ford Edge Limited 2WD | $2,847 |
| Jeep Wrangler Sahara 4WD 2-Dr | $3,002 |
| Toyota Prius | $3,059 |
| Hyundai Sonata GLS 4-Dr Sedan | $3,108 |
| Toyota Tacoma 2WD | $3,115 |
| Dodge Grand Caravan SE | $3,123 |
| GMC Sierra 2500HD SLE Regular Cab 4WD | $3,115 |
| Volkswagen Jetta SE 4-Dr Sedan | $3,123 |
| Ford Focus S 4-Dr Sedan | $3,115 |
| Toyota RAV4 4WD | $3,179 |
| Start a Quote Go | |
Prices based on single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Louisiana minimum liability limits. Discounts applied include claim-free, homeowner, multi-policy, multi-vehicle, and safe-driver. Rate information does not factor in specific location information which can influence price quotes greatly.
Based upon the table data, you can assume that vehicles like the Ford Explorer, Ford Escape, Honda CR-V, and Ford Edge are going to be some of the most economical vehicles to insure for poor drivers.
For poor drivers, one of the big considerations that are looked at to determine the annual cost of car insurance is your address in New Orleans. Cities with more crime and/or more people tend to have more expensive car insurance rates, whereas areas with less congestion tend to receive cheaper rates.
The illustration below shows the most expensive cities in Louisiana for low income drivers to buy car insurance in. New Orleans is listed at #1 having an annual price of $2,914 for the average insured, which is about $243 per month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | New Orleans | $2,914 |
| 2 | Harvey | $2,563 |
| 3 | Marrero | $2,544 |
| 4 | Terrytown | $2,455 |
| 5 | Metairie | $2,232 |
| 6 | Kenner | $2,225 |
| 7 | Central | $2,201 |
| 8 | Prairieville | $2,169 |
| 9 | Baton Rouge | $2,165 |
| 10 | Shenandoah | $2,139 |
| 11 | Hammond | $2,128 |
| 12 | Alexandria | $2,117 |
| 13 | Laplace | $2,051 |
| 14 | Lake Charles | $1,993 |
| 15 | Sulphur | $1,974 |
| 16 | Slidell | $1,957 |
| 17 | New Iberia | $1,928 |
| 18 | Lafayette | $1,917 |
| 19 | Monroe | $1,911 |
| 20 | Shreveport | $1,894 |
| Start a Quote Go | ||
Rate quotes are estimated as the specific geographic location can influence insurance rates considerably.
Driving violations and accidents
The common sense way to receive the cheapest insurance premiums in New Orleans for poor drivers is to drive carefully and not get tickets or have accidents. The illustration below illustrates how speeding tickets and accidents can raise insurance rates for different insured age categories. The premiums are based on a married male driver, full physical damage coverage, $1,000 deductibles, and no policy discounts are applied.
The chart shows that the average cost of a car insurance policy in New Orleans per year with no violations or accidents is $1,651. Get written up for two speeding tickets and the average cost swells to $2,268, an increase of $616 each year. Then add in one accident along with the two speeding tickets and the 12-month cost of insurance for low income drivers goes up to an average of $2,892. That’s an increase of $1,241, or $103 per month, just for not driving carefully!
The chart below highlights how deductible choice can change insurance costs when trying to find cheap insurance for low income drivers. The data is based on a single male driver, comp and collision included, and no discounts are taken into consideration.
In the chart above, a 30-year-old driver could lower rates by $582 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $874 by using a $1,000 deductible. Even younger insureds, like the Age 20 chart data, can cut as much as $1,724 every year just by choosing higher deductibles when buying full coverage.
When using a larger deductible, it will be required to have additional funds in a savings account to be able to pay the extra out-of-pocket expense that is associated with using high deductibles.
How to find economical car insurance for low income drivers
Here are a few thrifty solutions that can help New Orleans drivers find low-cost coverage.
- Bundle home or renters insurance to earn a discount on car insurance
- Do not get into accidents that are your fault
- Serious violations like DUI or reckless driving can increase rates dramatically
- Increase your physical damage deductibles
- Frequent claims may make car insurance unaffordable
- Good credit can mean cheaper rates
- Compare quotes from other companies often
The final tip is certainly crucial, as we stressed in this article. Car insurance rates can be modified anytime, so don’t hesitate to change insurance companies if you can save money. Staying with the same car insurance company is fine, but is isn’t recommended if that faithfulness ends up costing you several hundred dollars every year. Spend a few minutes and compare rates to find cheaper insurance for low income drivers in New Orleans.