Which city has the highest auto insurance rates?

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By Michael Whitney

Auto insurance is a product that is a must have if you drive a vehicle.  And every year, it seems as if it’s getting more expensive in every state. 

Insurance quote.com compiled a list of cities with the highest auto insurance rates in the United States.  Not surprisingly, Detroit, MI came in first.

Plagued with a barrage of troubles, such as bankruptcy and abandoned homes, Detroit’s auto insurance premiums are higher than New York City, Los Angeles and Atlanta.

Lori Conarton, communications director for the Institute of Michigan gives her reasons why insurance premiums in Detroit are the highest in the nation.  She states that , “Michigan is a no-fault auto insurance state, which means each insurance company compensates its own policyholders for the cost of injuries regardless of who’s at fault in an accident.”

Another factor is that Michigan’s state law provides unlimited lifetime coverage for medical expenses resulting from auto accidents.  This in itself drives up premium cost.

Here are three factors that affect your auto insurance rates:

  1. The more condensed the area you live in, the more likely you’re susceptible to auto thefts and accidents.
  2. Uninsured motorist also drive insurance premiums through the roof.  You pay for uninsured motorist coverage on your policy. The larger your city, the more uninsured drivers are on the road.
  3. Each state has different regulations that play a significant role in how much drivers are charged for auto insurance.

The city of Charlotte North Carolina boasted the lowest insurance costs. Detroit drivers pay 165 percent more than the national average, or about $2,112 in annual auto insurance premiums. Charlotte motorists pay 43 percent less than the national average of $797, or $454 annually.

The next-lowest insurance costs after Charlotte are in Cleveland (minus 31 percent, $549), Pittsburgh (minus 24 percent, $606), St. Louis (minus 18 percent, $653) and Chicago (minus 16 percent, $660).

Check out the following list to see where your city ranks:

  1. Detroit-Warren-Ann Arbor, MI
  2. New York-Newark, NY-NJ-CT-PA
  3. Miami-Fort Lauderdale-Port St. Lucie, Fl
  4. Los Angeles-Long Beach, CA
  5. Atlanta-Athens-Clarke County- Sandy Springs, GA
  6. Sacramento-Roseville, CA
  7. San Jose-San Francisco-Oakland, CA
  8. Philadelphia-Reading-Camden, PA-NJ-DE-MD
  9. Houston- The Woodlands, TX
  10. Tampa-St. Petersburg- Clearwater, FL
  11. San Diego- Carlsbad, CA
  12. Boston-Worcester-Providence, MA-RI-NH-CT
  13. Dallas-Fort Worth, TX-OK
  14. Portland-Vancouver-Salem, OR
  15. Minneapolis-St. Paul, MN-WI
  16. Washington-Baltimore-Arlington, DC-MD-VA-WV-PA
  17. Seattle-Tacoma, WA
  18. Orlando-Deltona-Daytona Beach, Fl
  19. Phoenix-Mesa-Scottsdale, AZ
  20. Denver-Aurora, CO
  21. Chicago-Naperville, IL-IN-WI
  22. St. Louis-ST. Charles-Farmington, MO-IL
  23. Pittsburgh-New Castle-Weirton, PA-OH-WV
  24. Cleveland-Akron-Canton, OH
  25. Charlotte-Concord, NC-SC

 

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