Auto Insurance Premiums

Are you sick of the high costs of car insurance? Do you know how your location stacks up against other cities as far as costs go? Hopefully, you’re not in one the five most expensive cities where you may be paying high above the country’s average car insurance costs. Let’s take a look at what might make one city more expensive than another and which five cities have the highest rates in the country.

Cities with Highest Car Insurance Costs

There was a study done that looked at the average car insurance rates in the 25 largest metropolitan cities in the US. Here’s what the results said about what cities have the highest rates.

  1. At $2,100/year, Detroit, Warren, and Ann Arbor in Michigan come in at the highest cost of car insurance.
  2. New York and New Jersey are barely under $1,100 a year.
  3. Miami and Ft. Lauderdale in Florida have rates over $1,000 per year.
  4. Los Angeles and Long Beach in California come in at just under $1,000 per year.
  5. Atlanta and Athens in Georgia are also just under $1,000 per year.

This shows that the Detroit metropolitan area has car insurance costs that nearly double the second most expensive area.

Cities with Lowest Car Insurance Costs

Results from the same study took a look at which cities had the lowest car insurance rates, and they found the following data:

  1. Charlotte and Concord in North Carolina and South Carolina, respectively, are just over $450/year.
  2. Cleveland, Akron, and Canton in Ohio come in at about $550/year.
  3. Pittsburgh, New Caste, and Weirton in Pennsylvania, Ohio, and West Virginia, respectively, are just over $600/year.
  4. St. Louis, Farmington, and St. Charles in Missouri and Illinois are a little over $650/year.
  5. Chicago and Naperville Illinois, Indiana, and Wisconsin are just under $700/year.

Factors Considered

There are many factors in a given area that can cause higher or lower rates when compared with a different area. One large factor is the population of an area since the more drivers there are, the more the risk of accident rises. Of course, more accidents equals more insurance claims. This is why some of the most populated cities are the ones with the highest insurance costs.

Alternative factors that play a role in insurance costs are accident and theft statistics for your area as well as the number of estimated uninsured drivers in your location. Miami’s insurance rates are especially high due to the high number of accidents that happen each year.

Lastly, every state has their own auto insurance laws, which can also play a role in determining car insurance costs. For instance, Michigan is a “no fault” state, meaning all drivers need to have extra medical insurance that usually isn’t required in other states. This coverage can add a large cost to a state’s car insurance premiums.

So, if you don’t live in one of those cities listed above with the highest car insurance rates, you should jump for joy because it could always be worse. It may also be a good idea to compare rates between different car insurance providers to ensure you’re getting the best deals and saving as much money as possible. Another option you may have for lowering your car insurance rates is to take a traffic school defensive driving course. Make sure you check with your insurance provider to see if this money-saving option is available to you.


Online Defensive Driving and Traffic School Courses