#car insurance rate
Top 25 cities for highest auto insurance rates
General Motors headquarters at the Renaissance Center highrise office complex is seen n this 2010 file photo in Detroit (Photo: Bill Pugliano Getty Images)
Detroit isn’t just the car manufacturing capital of the U.S. — it’s also tops when it come to high car-insurance costs.
The Motor City and its metropolitan area lay claim to the dubious distinction of having the most expensive auto insurance in the nation, according to an analysis by finance-info provider Bankrate Insurance.
Detroit-area drivers on average pay 165% more than the national average for car insurance, followed by New York, where motorists pay 36% more, and Miami, 34% more. The least expensive premiums, the website stated, are enjoyed by Charlotte, N.C. where area residents pay 43% less than the national average; Cleveland, 31% less; and Pittsburgh, 24% less.
Why so high in Detroit?
“Michigan is the only state where car insurance includes unlimited personal injury protection,” says Laura Adams, senior analyst for insuranceQuotes.com, in a statement. “Also, Detroit has a very high %age of uninsured motorists — as high as 50% by some estimates. That unfortunately raises rates for those who do have car insurance.”
While New York ranks No. 2 among the most expensive car-insurance cities, the nation’s next-largest cities, Los Angeles and Chicago, check in at Nos. 4 and 21, respectively. L.A. motorists pay 25% more than the national average, while Windy City-area drivers pay 16% less. Dead-center on the list at Nos. 12, 13 and 14 are Boston, Dallas and Portland, Ore. where residents pay 2% more, 1% more and 1% less. States with metro areas appearing most frequently on the list include California (five times), Pennsylvania (four times) and Florida (three times).
Researchers say population density is naturally a major contributor to insurance rates: more people, more cars, more potential for crashes. Other factors include theft rates, state regulations and %age of uninsured motorists.
Does your area rank among places with the nation’s costliest insurance? Below are the top 25 metropolitan areas in order of most- to least-expensive, followed by the percentage paid compared with the national average:
1. Detroit-Warren-Ann Arbor, Mich. 165%
2. New York-Newark, N.Y.- N.J.-Conn.-Pa. 36%
3. Miami-Fort Lauderdale-Port St. Lucie, Fla. 34%
4. Los Angeles-Long Beach, Calif. 25%
5. Atlanta-Athens-Clarke County-Sandy Springs, Ga. 17%
6. Sacramento-Roseville, Calif. 16%
7. San Jose-San Francisco-Oakland, Calif. 10%
8. Philadelphia-Reading-Camden, Pa.-N.J.-Del.-Md. 10%
9. Houston-The Woodlands, Texas, 10%
10. Tampa-St. Peterseburg-Clearwater, Fla. 9%
11. San Diego-Carlsbad, Calif. 2%
12. Boston-Worcester-Providence, Ma.-R.I.-N.H.-Conn. 2%
13. Dallas-Fort Worth, Texas-Okla. 1%
14. Portland-Vancouver-Salem, Ore. -1%
15. Minneapolis-St. Paul, Minn.-Wis. -5%
16. District of Columbia-Baltimore-Arlington, Md.-Va.-W.V.-Pa. -6%
17. Seattle-Tacoma, Wash. -10 %