Louisiana Remains the Least Affordable State in the Country for Personal Auto Insurance, According to New IRC Study
In 2022, the average annual expenditure for auto insurance in
“Affordability issues in Louisiana’s personal auto insurance stem from multiple factors,” said
Porfilio, who is also chief insurance officer of the
Key findings of IRC study:
-
Median household income in
Louisiana was 22% below theU.S. average. Combined with the state’s high premiums, the auto insurance expenditure share of income – IRC’s key measure of affordability – is 2.7% inLouisiana , compared with 1.5% in theU.S. overall. -
Injury coverages accounted for the largest share of insurance expenditures in
Louisiana , 1.3% of income, double the share for theU.S. as a whole.Louisiana drivers spent 1.0% of their income for crash repair coverage and 0.4% to cover vehicle damage from weather or other non-crash causes. -
The IRC identified several factors that contribute to the rising cost of insurance in
Louisiana , including injury claim frequency, underinsured motorists and claim litigation. -
Personal auto insurance expenditures in
Louisiana were well above those in any other Southern state, as were most of the key underlying cost drivers.
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