As auto insurance increasingly moves into the ranks of commoditization, Americans find themselves more or less satisfied with their automobile insurance. Still, the debate rages on over which factors—such as education, credit score or income level—can be used to calculate insurance rates.
A combination of these factors, as well as the quantity of uninsured motorists and local regulations, means that some Americans also pay more than their neighbors for car insurance.
A study from Bankrate’s Insurancequotes.com reveals the most expensive American cities in which to buy auto insurance, compared by an average $797 for annual coverage.
13. Dallas-Fort Worth—1% higher than national average
11. Boston (tie)—2% higher than national average
11. San Diego (tie)—2% higher than national average
10. Tampa—9% higher than national average
7. Houston (tie)—10% higher than national average
7. Philadelphia (tie)—10% higher than national average
7. San Francisco (tie)—10% higher than national average
6. Sacramento—16% higher than national average
5. Atlanta—17% higher than national average
4. Los Angeles—25% higher than national average
3. Miami—34% higher than national average
2. New York—36% higher than national average
1. Detroit—165% higher than national average
Already troubled Detroit skyrockets ahead of other major metropolitan areas in part because the state of Michigan requires drivers to carry “no fault” coverage, which means the policyholder is afforded coverage no matter who is at fault.
Detroit also has a large population of uninsured motorists, who drive up costs for everyone, Insurancequotes.com said.
Other factors affecting these ratings include the amount of traffic on the road, which is why analysts considered the 25 largest metro areas in the US when assigning rankings.
Content provided by Insurance Business America
Rusty began his insurance career with Gallaher Insurance in 1996. Over his career he served on the Missouri Young Agents committee, earned his Certified Insurance Counselor (CIC) designation and helped grow Gallaher Insurance to become one of the largest agencies in Missouri. In 2012, he launched Edge Insurance, based in Columbia MO. Gallaher Insurance and Edge Insurance remain sister agencies sharing similar goals of protecting our client’s assets to the best of our ability and providing amazing service.