A blog post from insurancequotes.com suggests that Detroit might have some of the most expensive car insurance in the country. The cost of insuring a car in Detroit came in at a massive 165% higher than the national average. That makes it the most expensive of the largest 25 metro markets in the USA. The cheapest was Charlotte, North Carolina, where they pay 43% less than the national average.
Insurance industry experts suggest that population density plays a role in determining which markets have higher or lower auto insurance costs. Basically, the more people on the road where you are driving, the more likely it is that an accident will occur. That’s why you wind up with New York and Los Angeles near the top of the list.
Other areas like Miami don’t have the same levels of traffic as New York, but they do have a problem with cars being stolen. Another factor to consider is the type of cars being driven in the area. In some parts of Miami there are a large number of expensive luxury cars being driven. It’s a lot more expensive to repair a ding on a Lamborghini than it is a Ford.
Detroit has it’s own reasons for being so very expensive.
1) It is a no-fault auto insurance state. Insurers must pay people even when they were at fault in the traffic accident.
2) The state compels insurers to provide lifetime medical coverage for injuries results from auto accidents.
While it costs a lot to insure your vehicle in Detroit, it’s important to remember that many other costs of living are cheaper than comparable metro areas in the USA. But for citizens of Detroit, it’s enough to make them consider selling the car and taking the bus!