Making a decision to buy a car can at times be a very expensive. Whether buying new or used car, you will have to contend with regular maintenance costs, buying spare parts, fuel and other consumables. Add to these the cost of insurance cover and you have a heavy financial responsibility that requires careful planning. Of all the costs, the cost of car insurance cover in the US can either be affordable or expensive, depending on the city. Below are the 5 most expensive cities in the US for car insurance.
New Orleans – According to available 2011 statistics, the average car insurance premium rate stood at $3,600. Even though the city is overcrowded, such was found not to be the cause of high premium rate. Rulings made by the judiciary were found to be the main cause of the same.
Miami – Car owners living in Miami City have over the years made to contend with ever increasing car insurance premium rates. Other factors have also come into play, pushing up the cost of premiums further. One, Miami has a no-fault insurance rule that has meant that car insurance premium rates remain high. Secondly, insurance companies doing business in Miami continue to receive volumes of fraudulent claims. The average car insurance premium in the city is $3,400.
Detroit – Of all cities in the US, the city of Detroit happens to be at the most expensive when it comes to auto insurance. Average car insurance premium in the city stood at $5,900 in early 2012. The high premium rate is attributed to several factors including high human population, thousands of cars plying the roads daily and the fact that the city operates a no-fault insurance system.
New Jersey – Like with such other cities as Detroit, and Miami, the city of New Jersey operates a no-fault insurance system, which continues to push up the cost of car insurance. Even though its average car insurance premium stands at $2,900, the same is still high when compared to other cities with as average premium rates.
Philadelphia – The city of Philadelphia is only second to Detroit City as one of the 5 most expensive cities in the US for car insurance. The average car insurance premium in the city currently stands at $5,900, which is the second highest in the US.
These 5 most expensive cities in the US for car insurance considering the fact that their average car insurance quotes more than doubles the national average. The US national car insurance average currently stands at $1,200, which makes the above five cities the most expensive for car owners. From the above figures and information, it is apparent that the no-fault insurance rule and high population are the main cause of such high car insurance cost.