Detroit, Michigan has the highest insurance rates in th... Detroit, Michigan has the highest insurance rates in the country. (shutterstock)
Detroit once again tops a list of most expensive cities in America to insure a vehicle. Charlotte ranks as the cheapest.

Detroit drivers pay an astounding 165 percent more than the national average for car insurance, according to InsuranceQuotes.com.

The second-most expensive city is New York, where drivers pay only 36 percent higher rates than the national average, followed by Miami at 34 percent and Los Angeles at 25 percent higher than average.

Detroiters pay more because of their zip codes. Insurers use something called "territorial rating system" to determine high-risk zip codes and charge drivers who live there more. Detroit's high crime rate results in drivers paying $4,599 per year on average. Their neighbors a few miles north in the suburb of Royal Oak, Michigan pay less than half that rate, according to the Noisy Neighbor tool at carinsurance.com.

Michigan overall has high insurance rates because it is the only state with a no-fault law which provides unlimited lifetime coverage for medical expenses for those injured in auto accidents. These bills can run into the millions. The Michigan Catastrophic Claims Association currently recommends insurers pad an addition $186.00 per vehicle to polices to cover the cost of covering care.

The unlimited no-fault law, along with Detroit's crime rate, makes insurance too expensive for many to afford. The rate of uninsured drivers causes the cost to go up even higher. InsuranceQuotes.com says some estimates put the rate of uninsured drivers in Detroit at 50 percent.

North Carolina law, on the other hand, requires all insurers to follow a single rate plan throughout the entire state. Insurer can only deviate from this rate plan by reducing rates. Rural drivers end up paying a little more so that Charlotte drivers can pay a little less. Cleveland residents pay the second-lowest rates, 31 percent less than the national average. Pittsburgh rounds out the list, with drivers paying 24 percent less than the national average.

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