Find affordable car insurance with bad credit by comparing rates.
Find affordable car insurance with bad credit by comparing rates.
Jermaine J.
It can be tough to find affordable auto insurance if you have bad credit. Insurers rely on credit tier as a primary rating factor, assigning premiums based partially on drivers’ credit histories. Because auto insurance companies rely on historical data showing drivers with bad credit histories have a greater likelihood of filing auto insurance claims, the companies account for for that additional risk by assigning expensive rates.
Your car insurance costs with bad credit depends on which company you choose, where you live, and a few other rating factors. See below typical insurance rates for drivers with bad credit in major Louisiana cities and rates from a few of the most popular auto insurance companies, , along with tips to save on car insurance if you have bad credit in Louisiana.
Louisiana drivers face an average penalty of $2,026 per year for having a credit score in the “worst” tier. Drivers in the "poor" or "below fair to poor" credit tiers will also pay above-average rates for a car insurance policy.
| Credit Tier | Average Annual Rate in Louisiana |
| Worst | $4,251 |
| Poor | $3,819 |
| Below Fair to Poor | $3,509 |
| Average — All Credit Tiers | $2,225 |
Car insurance rates will also vary depending on the precise area where you park your car. Insurance companies look at your address to estimate how likely you are to file a claim: the more claim-prone your area,, the more expensive your rates will be.
Listed below are major Louisiana cities and their average car insurance costs for drivers with low credit scores.
| City | Average Annual Rate — Worst Credit | Average Annual Rate — Poor Credit | Average Annual Rate — Below Fair to Poor Credit |
| New Orleans | $6,571 | $5,887 | $5,410 |
| Baton Rouge | $5,032 | $4,521 | $4,162 |
| Shreveport | $3,867 | $3,475 | $3,192 |
| Metairie | $5,512 | $4,914 | $4,522 |
| Lafayette | $4,274 | $3,843 | $3,533 |
Another factor that contributes to how much you pay for auto insurance is the insurance company you select. Each and every car insurance company prices its policies in a unique manner, giving rating factors varying weights in their calculations. Credit can be a primary differentiator in price between otherwise-similar insurance companies. In Louisiana, the most affordable insurance company for drivers with bad credit is GEICO, which offers a premium cut of $1,141 per year in comparison to the second-cheapest company, Louisiana Farm Bureau Insurance.
See prices from major auto insurance companies in Louisiana for drivers with bad credit.
| Company | Average Annual Rate — Worst Credit |
| GEICO | $2,620 |
| Louisiana Farm Bureau Insurance | $3,761 |
| Allstate | $4,093 |
| State Farm | $4,771 |
| Progressive | $4,872 |
If you're buying car insurance with a bad credit history, remember these tips:
