The Highest And Lowest Car Insurance Rates In America
Insuring a car can be expensive, especially if you live in a highly populated, high-crime city, or your driving record is spotty. Prices are often lower in sleepy towns where they still have video stores and barber poles, but we can't all live in charming villages.
Using Carinsurance.com's "Nosy Neighbor" tool, we looked up the highest and lowest insurance rates in every state and came up with the most, and least, expensive places in America to insure your car. For people plotting a move, perhaps for retirement, who want to lower their bills, click through to see some of our surprising finds.
1. Detroit, Mich.,: $4,599/a yearIronically, the Motor City's auto insurance rates are so high residents often register their cars to addresses outside of the city just to save money. Another 19-percent of Detroiters just forego insurance all together, a dicey move in the only state with both no-fault insurance and guaranteed unlimited lifetime personal injury benefits for those injured in a car crash. Detroiters also pay much higher rates due to the out-of-control crime rates and the expense of medical treatment for poorer residents without health insurance.
2. Brooklyn, N.Y., $4,133/a yearThe most populous of New York's five boroughs follows close behind Detroit. Why? It's not just the intense traffic jams and accident rates. Fraud is a huge problem, according to Brooklyn Executive Assistant District Attorney Jeff Ferguson. Ferguson at a City Council hearing in January said at least 36% of insurance claims made in the borough are either fraudulent or inflated.
3. New Orleans, La., $3,530/a yearWith a very high rate of natural-disaster damage, the Crescent City earns the third spot on our most expensive list. According to the Insurance Research Council, Louisiana has the highest rate of bodily injury claims in the US. New Orleans also has had crime problems in the years following Hurricane Katrina.
4. Allison, Texas $3,385/a yearAllison is little more than a crossroads in the Texas Panhandle. It's also one of the most expensive places in America to get your car insured, though no one from the Texas Insurance Farm Bureau to the Texas Department of Insurance could explain why. The population, which has hovered around 130 people for the last three decades, pays the fourth highest insurance rates in the country. No wonder only a few dozen people live there.
5. Miami, Fla., $2,632/a yearInsurance rates in the Sunshine State are the fifth highest in the nation, but maybe should be higher given the way Miamians drive. The city is number one in auto fatalities and pedestrian strikes. Insurance claims are also higher due to the astonishing thirty-five hit-and-runs committed in Miami-Dade County each day. Yup. Every day. Slate.com recently named Miami as having the worst drivers in America.
1. Bullhead City, Ariz., $702/a year
What started as a sleepy frontier town has turned into a major tourist spot near Lake Mohava, especially for older snowbirds and their RV campers escaping harsh winters in Northern States. They've also seen auto thefts reduced by half since 1999.
2. Falmouth, Maine., $730/a yearA town with three private golf courses and a yacht club sounds more like a gated community than a town. But this charming costal zip code has over 11,000 residents and just two auto thefts last year. Falmouth is also the setting of many of Stephen Kings' early novels, though rates would surely be higher if there was a "Christine"-type car rolling around town.
3. Kohler, Wis., $761/a yearKohler is a very small town with a population just north of two thousand. Only five square miles, Kohler started life as a company town, created by the Kohler Plumbing Company. The median income is $75,000 per household, a good $25,000 over the national average, which may have something to do with its low crime rates and low car insurance rates.
4. Franklin, Iowa: $772/a year
With a population of only 143 at the last census, Franklin is just as small and sleepy as Allison TX, except Franklin is the fourth cheapest place to insure a car. Iowa beats Texas by a country mile.