Motown Has Highest Auto Insurance Premiums in US

Detroit’s economy is in the tank, but that isn’t stopping auto insurance companies from asking an arm and a leg in premiums.

According to a recent study by InsuranceQuotes.com, drivers in the Detroit metro area are paying 165 percent more than the national average for auto insurance. The company used the national average of $797 in 2011 for the comparison, which is the most recent data available from the National Association of Insurance Commissioners (NAIC). Following Detroit was New York, Newark and Connecticut with a 36 percent premium over the average. Rounding out the top five was the Miami/Ft. Lauderdale, Florida area (34 percent), Los Angeles/Long Beach, California (25 percent) and Atlanta/Athens, Georgia (17 percent).

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On the opposite end of the spectrum are the five areas that have the least expensive auto insurance with the Charlotte, North Carolina and Concord, South Carolina area costing 43 percent below the national average. Cleveland/Akron, Ohio was second at 31 percent while Pittsburgh/New Castle, Pennsylvania is 34 percent cheaper. Fourth place went to the St. Louis/St. Charles, Missouri area at 18 percent and finishing off the top five is Chicago, Illinois metro area at 16 percent.

“There is definitely correlation between population density — and thus traffic density — and insurance rates,” said Eli Lehrer, president of the nonprofit research group The R Street Institute. “When you have more cars on the road, you have a greater likelihood of accidents and insurance claims. That’s why you see really crowded cities like Los Angeles and New York near the top of the list, while cities like Charlotte and Cleveland are near the bottom.”