Top 10 Most Expensive Cities for Car Insurance


Car Insurance. We probably don’t like paying it, but all of us with a car need it. Insurance premiums can vary, but did you know that one of the biggest factors involved is location? Rates vary significantly across the U.S., and some people will pay much more depending on where they live, but it’s not only drivers to blame for higher rates. Bad weather, traffic conditions, crime rates and no-fault insurance laws all affect premiums, and sometimes premiums can get really high.
NerdWallet recently did a study which analyzed the average annual premiums for the 125 biggest cities in the U.S.. They used the profile of a 26 year old male with no history of accidents, insuring a 2012 Toyota Camry with extended coverage. Using this information, they came up with the following list of the Top 10 Most Expensive Cities for Auto Insurance.

10. Philadelphia, Pennsylvania
Average annual premium: $2,930.53
Cold winters, year-round congestion and unfavorable car insurance laws due to Pennsylvania’s status as a no-fault state all contribute to high insurance costs.

9. Miami, Florida
Average annual premium: $3,168.75
Miami is in a no-fault insurance state and is victim to hurricanes, but some studies show that Miami also just seems to have bad drivers. The city has extreme congestion and was ranked as the U.S. city with the rudest drivers. According to an Allstate study, Miami has the ninth worst drivers in the U.S., which translates to a 58.4% greater than average accident frequency.

8. Louisville, Kentucky
Average annual premium: $3,255.99
Louisville may have mild winters compared to some of the other cities in this list, but it’s located in a no-fault state and according to, it is more dangerous than 83% of U.S. cities and has a high number of car thefts.

7. Jersey City, New Jersey

Average annual premium: $3,266.63
New Jersey also has no-fault insurance and drivers in Jersey City have to face high congestion and icy winters. On average, residents commute 35 minutes to work.

6. Hialeah, Florida
Average annual premium: $3,271.86
Hialeah drivers play the highest premiums in Florida, in part due to Florida’s no-fault insurance laws and frequent hurricanes.

5. Baton Rouge, Louisiana
Average annual premium: $3,363.73
Locals in Baton Rouge endure roads in despair and traffic congestion. According to the U.S. Census, the average annual premium accounts for about 8.6% of the city’s median household income.

4. Newark, New Jersey
Average annual premium: $3,525.43
Newark’s close proximity to NYC and New Jersey’s no-fault state law both contribute to Newark’s high premiums. Drivers on average have a 31.3 minute commute to work which is a bit higher than the national average of 25.4 minutes.

3. Grand Rapids, Mississippi
Average annual premium: $4,042.42
Grand Rapids is located in a no-fault insurance law state and suffers from bad weather, which often increases road deterioration. Non-profit TRIP estimates that Grand Rapids’ potholes cost drivers $1,027 a year.

2. New Orleans, Louisiana
Average annual premium: $4,309.61
Census figures report that the average annual cost for car insurance is about 12% of New Orleans’ media household income. New Orleans has some of the worst maintained roads in the country and drivers commute an average of 22.8 minutes to work. Louisiana also has a law that allows drivers to directly sue insurance companies after an accident.

1. Detroit City, Michigan
Average annual premium: $10,723.22
The Motor City may be known for its cars, but car insurance rates are the highest in the U.S. Detroit drivers face high rates due to the state’s no-fault insurance system and the city’s high crime rate. However, insurance premiums in Detroit are not uniformly high and premiums vary greatly.

While there are some auto insurance factors you can’t control, there are steps you can take to ensure you’re getting cost-effective coverage. Do your best to be a safe driver and make sure that you shop around for the best rates. Car insurance may be required, but you don’t have to be paying more than necessary for adequate coverage. Call us today at 305-648-7070 to learn more or to receive a free quote today.