Tired of your sky-high auto insurance premiums? If so, then you might want to look at the bright side; assuming you don’t live in one of the five most expensive cities for car insurance, things could always be worse. Sure, it’s no secret that the cost of owning a vehicle can be high, and the typical.
American driver pays around $800 annually for auto insurance. However, rates can vary greatly from area to area based on a number of factors. Read on to explore the US cities with the highest (and lowest) insurance premiums.
Cities with the Highest Premiums
According to a study that sampled auto insurance averages among the 25 biggest metropolitan across the United States, the most expensive places for annual auto insurance premiums are as follows:
1. Detroit/Warren/Ann Arbor, MI at more than $2,100 per year
2. New York/Newark, NJ/Connecticut/PA at just under $1,100 per year
3. Miami/Ft. Lauderdale, Florida at just over $1,000 per year
4. Los Angeles/Long Beach, California at just under $1,000 per year
5. Atlanta/Athens, Georgia at just under $1,000 per year
As you can see, the Detroit metropolitan area has car insurance premiums that are nearly twice as expensive as even the second-place area.
Cities with the Lowest Premiums
The same study also ranked the least expensive cities in the nation for auto insurance premiums and published the following results:
1. Charlotte/Concord, North Carolina and South Carolina at just over $450 annually
2. Cleveland/Akron/Canton, Ohio at $550 annually
3. Pittsburgh/New Caste/Weirton Pennsylvania, Ohio, and West Virginia at just over $600 annually
4. Saint Louis/Farmington/Saint Charles Missouri and Illinois at just over $650 annually
5. Chicago and Naperville Illinois, Indiana, and Wisconsin at just under $700 annually
Determining Factors
There are a number of factors that can influence insurance rates in a particular area. For starters, the population dentist plays a huge role; the more drivers there are out on the road, the greater the chance of accidents. And with accidents come insurance claims. This explains why many of the most expensive areas for car insurance premiums are places with a higher population density.
Other factors that can influence auto insurance rates include accident and theft statistics for a particular area in addition to the estimated number of uninsured motorists driving in the area. The former is exemplified in Miami’s high insurance rate ranking because accident statistics are quite high in this area.
Finally, since all states set and enforce their own laws regarding auto insurance requirements, this can also impact overall premium costs. For example, Michigan is a “no fault” state, which means it requires all of its drivers to carry extra medical coverage that wouldn’t be required in another state. This coverage can add up rather quickly and causes premiums to skyrocket.
Unless you live in one of the most expensive cities for auto insurance premiums, perhaps you’ll remember to look on the bright side the next time you have to pay your car insurance bill. After all, as much as you’re paying now, your rates could always be higher. It can also pay off to check insurance rates with other carriers and make sure you’re taking advantage of all money-saving discounts offered by your current insurance company.
