While the average American spends less than 3% of their gross income on auto insurance each year, Louisiana drivers spend more than double that amount [6.1%], according to state figures.
As the Louisiana Radio Network (LRN) reports, insurance analyst Rob Bhatt, with online lending platform LendingTree, explains why Louisiana premiums are so high. “Statewide, the state has the second-highest average rate. And then incomes aren't as high as they are in other states.”
The LendingTree study found that the average Louisiana driver spends $327 a month on auto insurance, while earning a monthly income of just over $5,300.
Researchers found that nationally auto insurance costs have risen 37.5% since 2021, outpacing the rising costs of other vehicle expenses as well as income growth.
But earlier this year, the Louisiana Department of Insurance released market data trends from the past year with more encouraging news for consumers.
· In 2025, Louisiana private passenger auto premiums declined by an average of -5.8%, representing a statewide premium reduction of more than $340 million.
Insurance Commissioner Tim Temple characterized the 2025 data as showing meaningful signs of stabilization in the private passenger auto insurance market.” But he added, “We have much more work to do when it comes to making auto insurance more affordable in the long term, especially on the commercial auto side where rates are still extremely high.”
All of the top 10 states where car ownership costs take up the largest share of income are clustered in or near the southeastern portion of the U.S. That's according to online lending platform LendingTree.
Researchers have pointed to, “lower median household incomes...and deep car dependency across sprawling, lower-density regions” as contributing factors which only serve to further exacerbate the crisis, brought on by those fast-rising auto insurance rates.
