Report: Louisianans pay second-highest auto insurance premiums in U.S.

The average Louisiana driver forks over about $2,885 to keep his or her vehicles insured each year, according to a new report from CarInsuranceQuotes.com. That’s about 5.5% of the median household income in the state, which is $52,456. By that measure, Louisianans are paying the second-highest auto premiums in the country. Michigan residents spend the most on auto insurance—about 8% of the median household income of $56,101—according to the report. The rate in Louisiana is so high compared to other states because it “is not a no-fault car insurance state. Instead, it has a traditional fault-based system, also called a tort system,” the report says. “Experts say the big reason for Louisiana’s high car insurance premiums is that, while the state has a fairly average number of car accidents compared with other states, it leads the country in injury claims. In Louisiana, 43% of accidents involving property damage in 2006 included injury claims, compared with the national average of about 24%, according to the Insurance Research Council.” See the complete list and the full analysis here; and read a story in the current issue of Business Report, which includes data from another report that says Louisianans pay the highest auto insurance rates in the nation, here.