With talk about rising prices in almost every venue, the cost of insurance, especially car insurance, continues to keep pace with the rest of the markers on the cost of living index. However, there are some cities where insurance in particular is much higher than the rest of the United States. The reasons can be from various factors. Here are 5 expensive cities to buy in insurance in America.
According to a 2011 survey, Detroit MI has the highest insurance premiums in the country. This is somewhat ironic for two reasons: Detroit’s designation as “The Motor City” and its disastrous unemployment rate. The average auto insurance premium in this community was $5he congestion is high and the state has a no-fault insurance system, which has held prices high.
Philadelphia PA holds second place in this unfavorable ranking of 5 expensive cities to buy in insurance in America. The annual rate in the City of Brotherly Love in 2011 was $4076. This compares with the natural ranking average of $1199. Philadelphia blames crowded streets and a high concentration of autos for its rising insurance rate.
The high insurance premiums in the city of New Orleans, LA are due not to overcrowding or accident rates, but because of the way the judicial regulations are structured. Only claims greater than $50,000 can be taken before a judge and jury. Anything less than that is settled out of court. New Orleans’ 2011 average premium was $3599.
With an annual average premium of $3388, Miami FL is in the top five list. The causes of higher rates are ties to a no-fault auto insurance rule. Miami also has a significant number of fraudulent claims which clog the system and cause rate cost creep. Complaints about high rates often come from those who are on a fixed income.
Newark, NJ blames its high rates on the no-fault insurance rule. Their average premium is also well above the national average at $2867 annually. Overcrowded highways and bi-ways contribute to the high cost of insurance coverage for state-wide customers. This is another city which is well over two times the national average.
The cost of owning and operating a vehicle in a safe and responsible manner is high and creeping higher constantly. In 5 expensive cities to buy in insurance in America, there are additional regulations that must be followed in order to purchase the coverage needed. This can involve more expenses for tests, emissions control and other elements of safe driving.