The study based its findings on the estimated rate for a driver with a bachelor's degree that traveled 15,000 miles a year and had "no breaks in coverage, a $500 collision and comprehensive deductible, state minimum liability coverage and full PIP coverage." For people who resided in the Detroit metropolitan area, which includes Warren and Ann Arbor, MI, they would pay 165 percent more in premiums than average. That was far and away the highest in the survey. Areas considered traditionally hard on cars like New York City and Los Angeles were 36 percent and 25 percent above average, respectively. You can check out an interactive map on its website.
According to the study, there are two major factors that make the Detroit area so bad. First, Michigan is the only state where car insurance includes unlimited personal injury protection, which increases the cost of claims. Making things worse, about half of the city's drivers are estimated to have no insurance at all.
If you're hoping to avoid paying high premiums, Charlotte, NC, is the place to be. It has the nation's lowest prices at 43 percent less than average. Although, the second and third cheapest regions are actually rather close to Detroit. The Cleveland/Akron/Canton, OH, area and Pittsburgh, PA, are rated second and third lowest at 31 percent and 24 percent lower average, respectively.
In general, the study claims that population is a major determiner of premiums, but obviously that's not an absolute rule given Detroit's top spot. Things like insurance regulation and the percentage of the population who are insured also play a role. Scroll down to read Insurancequotes.com's press release about the study.
Motor City Expensive Due to Unlimited Personal Injury Protection, Many Uninsured Motorists
SAN FRANCISCO, Sept. 11, 2014 /PRNewswire/ -- Detroit has the most expensive car insurance and Charlotte has the cheapest, according to a new insuranceQuotes.com examination of average premiums in the 25 largest U.S. metropolitan areas.
In the Detroit metro area, drivers pay a whopping 165% more than the national average for car insurance. The next most expensive metros are New York City (36% more than the national average), Miami (+34%) and Los Angeles (+25%).
"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, insuranceQuotes.com. "Also, Detroit has a very high percentage of uninsured motorists – as high as 50% by some estimates. That unfortunately raises rates for those who do have car insurance."
Charlotte-area residents enjoy the cheapest average car insurance premiums, 43% less than the national average. Cleveland (-31%) and Pittsburgh (-24%) are the second- and third-least expensive metropolitan areas, respectively.
insuranceQuotes.com prepared a helpful tool that allows consumers to compare car insurance costs in every U.S. ZIP code, along with a map that illustrates the most and least expensive states. That information, along with the full ranking of the 25 largest metro areas, is available here: http://www.insurancequotes.com/auto
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