Separate research endeavors by the Insurance Research Council (IRC) and EpicVIN came to the same conclusion that Louisiana dealers from Shreveport to Slidell might have already known.

It’s mighty expensive for vehicle owners in the Bayou State to maintain insurance coverage after they take delivery.

According to IRC, the average annual expenditure for auto insurance in Louisiana in 2022 was $1,588 per vehicle, which is 40% higher than the national average of $1,127 and higher than any other state except Florida.

IRC computed auto insurance costs accounted for 2.67% of the median household income in the state.

IRC acknowledged strong income growth in recent years has resulted in moderate improvement in this affordability measure since its peak in 2017. But IRC said Louisiana has maintained its decades-long streak as the least affordable jurisdiction for auto insurance.

“Affordability issues in Louisiana’s personal auto insurance stem from multiple factors,” IRC president Dale Porfilio said. “These include a higher tendency to file injury claims when an accident occurs, a high underinsured motorist’s rate, and a high rate of claim litigation. These underlying cost drivers need to be addressed to improve affordability.”

In another project, EpicVIN examined the costs to have full insurance coverage in Louisiana this year. The vehicle history provider indicated Louisiana residents spend the most on car insurance with 7.12% of the average salary going toward insurance.

EpicVIN placed the average cost of full coverage insurance in the Bayou State at $3,626 and the average annual salary being $50,940.

Florida placed second in EpicVIN’s analysis with the Sunshine State’s residents spending an average of 7.06% of their income on full-coverage car insurance. The average cost for full car insurance coverage in the Florida was $3,950, and the average annual salary is $55,980.

Nevada landed third in the EpicVIN analysis with 6.42% of the average salary of $55,490 being used to obtain full-coverage car insurance that costs $3,564.

“As automobile insurance is a state rights issue and regulations are something states impose themselves, it’s clear that insurance costs are going to vary depending on where you live in the country, and this is seen here. EpicVIN CEO Jurgis Plikaitis said in another news release.

“However, the sheer difference in insurance costs between states may surprise some, as it shows that residents are sacrificing a larger portion of their income to insure a car based on where they live,”  Plikaitis added.