The Most Expensive Metro Areas For Car Insurance

Motorists in the Metropolitan Detroit area paying the highest premium for insurance in the country, according to a new study.

On average, a motorist in the Detroit area will pay 165 percent of the national average for auto insurance, according to research by Quadrant Information Services. Those in the sprawling New York metroplex come in just behind, but they pay a mere 36 percent more than the average for motorists across the country.

The typical U.S. motorist spends $797 a year for insurance, according to the National Association of Insurance Commissioners. But that figure can vary widely depending on a variety of factors, including a driver’s age, sex, and home base, as well as their driving record and the type of vehicle they own.

A person with a lot of tickets or crashes will be penalized, as will someone driving a sports car or some other, riskier vehicle. Young drivers also pay a premium because they tend to have more accidents – especially teenage males.

But where a person lives is also be a factor that insurance companies take into consideration when determining premiums. Areas with a large population typically experience more crashes on their crowded roads. That’s apparent when noting that the Big Apple is second on the list, with the sprawling Los Angeles region fourth, its motorists paying 25 percent more than average for auto insurance.

Michigan motorists, on the whole, are hammered because it is the only state that provides unlimited personal injury protection – which means hefty medical bills that motorists, on the whole, must help pay for. According to state data, personal injury claims surged from $20,000 to an average $46,000 from 2003 to 2013. The Detroit area, in particular, has a high rate of vehicle thefts and uninsured motorists, also driving up insurance bills for the entire region.

Miami, the third on the list, also has a problem with uninsured motorists and thefts – particularly the high-end vehicles that the region’s wealthy like to drive.

The Top 10 metro areas for car insurance:

1. Detroit-Warren-Ann Arbor, MI, 165 percent
2. New York-Newark, NY-NJ-CT-PA, 36 percent
3. Miami-Fort Lauderdale-Port St. Lucie, FL, 34 percent
4. Los Angeles-Long Beach, CA, 25 percent
5. Atlanta-Athens-Clarke County-Sandy Springs, GA, 17 percent
6. Sacramento-Roseville, CA, 16 percent
7. San Jose-San Francisco-Oakland, CA, 10 percent
8. Philadelphia-Reading-Camden, PA-NJ-DE-MD, 10 percent
9. Houston-The Woodlands, TX, 10 percent
10. Tampa-St. Petersburg-Clearwater, FL, 9 percent

Back to NAFA Connection