Factors Influencing the Cost of Car Insurance in New Orleans, LA

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The city of New Orleans in Louisiana has a population of around 391,000. The median household income is $39,576, and the per capita income is $30,177. The average cost of auto insurance here is $2,546. This is higher than the cost of auto insurance in most neighboring places such as Violet, Terrytown, Meraux, Gretna, and Chalmette. Car owners need to compare multiple car insurance quotes before deciding on the one that best suits their needs. Below are some of the factors for making car insurance expensive in New Orleans.

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Deductibles:

The cost of auto insurance increases with the decrease in the rate of deductibles. For example, in New Orleans, when the deductible is low, say $500, the cost of auto insurance rises to $1,352. This comes down to $1,142 when the deductible is high, say $1,000. 

Age of the Driver:

As the above graph indicates, auto insurance is most expensive for young drivers in New Orleans. Teenagers pay $8,261 on an average on auto insurance in New Orleans. This is almost four times the average rate of auto insurance in the city. Car insurance is cheapest for drivers who are in their fifties and sixties. The average cost of auto insurance for a 50-year-old driver in New Orleans is $2,245, while for a 60-year-old, it is $2,276. Age is one of the most common factors affecting the cost of auto insurance in any city in the country.

Credit Score:

A poor or average credit score is yet another factor that can make auto insurance expensive for the car owner. The average cost of auto insurance for car owners with a poor credit score is $4,153, while it is $3,461 for car owners with an “average” credit score. On the other end, car owners with an “exceptional” credit score can buy auto insurance for as low as $2,184.

Driving Record:

Having a poor driving record can also prove to be expensive in New Orleans. DUIs and other driving violations can lead to a lasting impact and can cause a massive jump in average auto insurance rates.