Car Insurance Costs: Here's Where You'll Pay The Most

Sep 12, 2014 12:25 PM EDT | Matt Mercuro

Drivers in Detroit pay the most for car insurance in the U.S., while those in Charlotte, North Carolina, pay the least.

Results are based on a recent study commissioned by InsuranceQuotes.com.

The study, which was conducted by casualty and property analysis specialists Quadrant Information Services, outlines the average cost of auto insurance premiums in the 25 largest U.S. metropolitan areas, according to an InsuranceQuotes.com press release.

What they found was a remarkable degree of difference based on location alone.

For example, drivers in Detroit metro area pay 165 percent more than the national average, while those in the Charlotte-Concord region end up paying 43 percent less than average.

The following five metro areas, on average, have the most expensive annual auto insurance rates in the country:

1. Detroit-Warren-Ann Arbor, Mich. - 165 percent

2. New York, N.Y.-Newark, N.J.-Conn.-Pa. - 36 percent

3. Miami-Fort Lauderdale, Fla. - 34 percent

4. Los Angeles-Long Beach, Calif. - 25 percent

5. Atlanta-Athens, Ga. - 17 percent

"One of the main reasons why car insurance is so expensive in the Detroit area is because Michigan is the only state where car insurance includes unlimited personal injury protection," said Laura Adams, senior analyst for InsuranceQuotes.com, in a statement, according to the release.

"Also, Detroit has a very high percentage of uninsured motorists, as high as 50 percent by some estimates. That unfortunately raises rates for those who do have car insurance."

The following five metro areas, on average, have the least expensive auto insurance rates in the country:

1. Charlotte, N.C.-Concord, S.C. - 43 percent

2. Cleveland-Akron-Canton, Ohio - 31 percent

3. Pittsburgh-New Castle, Pa. - 24 percent

4. St. Louis-St. Charles, Mo. - 18 percent

5. Chicago-Naperville, Ill.-Ind.-Wis. - 16 percent

Click here to see other locations that made the list.

The number of insurance claims in large urban centers, like those for theft, personal injury, and vehicle damages, is the main reason for the high premiums in major metropolitan areas, according to

"There is definitely correlation between population density, and thus traffic density, and insurance rates," said Eli Lehrer, president of the nonprofit research group The R Street Institute, according to the press release. "When you have more cars on the road, you have a greater likelihood of accidents and insurance claims. That's why you see really crowded cities like Los Angeles and New York near the top of the list, while cities like Charlotte and Cleveland are near the bottom."

State regulations can also have an impact on insurance rates. Lehrer mentioned that one reason for Charlotte's inexpensive auto premiums is that North Carolina requires all insurers to follow a single rate plan around the entire state.

This means rates are raised in less densely populated locations around the state, so they can be kept lower in dense regions.

Many other factors also affect insurance rates for any given person, like the type of vehicle, the age of the drive, driver profile, citation history, among of coverage, drive profile, even credit rating, and claims history, among others.

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