It’s no secret that the cost of car insurance can quickly add up, but it’s an essential form of protection that can keep us safe on the road. The price of car insurance premiums can vary significantly from city to city and state to state. Do you want to make sure that you’re paying the right price when you travel or move to a new area? We’ve researched for you so that you can better understand the most expensive states and cities for car insurance premiums.
How We’re Determining the Most Expensive States and Cities for Car Insurance Premiums
Many factors go into determining the cost of car insurance in a specific area. This includes population density, percentage of uninsured motorists in state or city, and how often weather-related claims are made. You may end up paying more just because of how often people make claims in a specific area. The costs of car insurance can vary greatly from state to state and city to city. Today we’ll discuss the most expensive areas to get coverage.
Let’s begin with the most expensive states for car insurance premiums.
Most Expensive States for Car Insurance Premiums
Michigan is the most expensive state for car insurance, with an average yearly cost of $2,693. This state happens to be a no-fault state—meaning both parties involved in a car accident are entitled to benefits. This is the case even if only one driver is actually at fault. Because of this, Michigan requires its residents to pay for better car insurance coverage. Drivers must carry personal injury protection, which is used to cover medical costs for all individuals on the policy, as well as uninsured passengers. With many people in this state committing insurance fraud and a large percentage of uninsured drivers, it leads to much higher insurance premiums.
Next up is Louisiana. This state is the next most expensive state to insure a car, with an annual average of $2,339 to protect a vehicle here. Why are the rates so high in this state? Many drivers are uninsured or carry minimal car insurance coverage. Because of this, drivers turn to the courts to get compensation for injuries and vehicle damage. This is one big reason the insurance rates continue to climb.
The third most expensive state for car insurance premiums is Rhode Island. The average yearly car insurance premium cost is $2,110. Rhode Island requires all drivers to be financially responsible in the event of an accident, meaning there are higher minimum coverage requirements in place state-wide.
It also cost a lot to insure your car if you live in the state of Florida. On average, drivers pay $2,059 annually for car insurance premium costs. There are many factors that go into this higher-than-normal rate. For starters, Florida has a large population of uninsured drivers. The state also has a high-risk population of drivers, many elderly drivers live here, and tourists frequent the state. Another reason car insurance is so high in this state is due to weather-related claims—think hurricanes and flooding. Want to make sure you’re getting a reasonable rate in Florida? We’ve outlined the cheapest Florida car insurance rates for you.
Finally, Nevada is the fifth most expensive state for car insurance premiums. The average yearly cost to insure a vehicle here is $1,915. A higher liability coverage requirement is one factor that goes into the cost in this state. It’s also a state with riskier driving due to the number of casinos, tourists, and drunk drivers.
Next, we’ll take a look at the most expensive cities for car insurance premiums.
Most Expensive States for Car Insurance Premiums
When it comes to cities, Detroit is the most expensive place for car insurance. This comes as no surprise when you take a look at the average annual cost to insure a vehicle in Michigan. The yearly average for this city is more than double the state average, at the cost of $5,464 per year. That’s a lot of money to spend on car insurance!
New Orleans, LA
Next up is New Orleans. The average yearly cost to insure a vehicle in this city is $3,686. Auto theft plays a big part in the cost of insurance here. New Orleans also has a high percentage of automobile-related lawsuits. These factors drive up the price.
Those who live in Hialeah, FL also pay a lot for car insurance. Located just a few miles from Miami, Hialeah is the third most expensive city for car insurance premiums. The average cost to insure a vehicle for a year is $2,913.
Miami is also a pricy city when it comes to car insurance costs. Residents here will pay on average $2,913 to insure their vehicle for the year. Want to save on your insurance? You can browse the cheapest rates for coverage here.
New York City
Finally, New York City. You may assume this would be the most expensive city in the United States for car insurance premium costs—but it’s actually the fifth most expensive city. The average annual cost for car insurance premiums is $2,814. Make sure that you’re paying a fair rate for your coverage—we’ve outlined the best prices for New York City car insurance.
These are the most expensive states and cities for car insurance premiums! Do these averages match up to what you pay for car insurance coverage? We’d love to hear more about your car insurance costs.