Ouch! Costliest Cities for Car Insurance

There are more than 250 million passenger vehicles in the United States of America. Car insurance enables policyholders to drive without having to worry about the monumental costs of a collision. That is, if it doesn’t bankrupt you first. Vehicle insurance is one of the few expenses that you are required by law to pay and depending on where you live, you may be paying a pretty penny indeed.

Expensive Cities for Car Insurance

Ironically, the metropolis known as ‘Motor City’ is notorious for its exorbitant insurance premiums. The average yearly cost of insuring a vehicle in Detroit is a whopping $5,948. Detroit’s prices seem especially outrageous considering that they are 56% higher than the second highest in the country and are more than seven times higher than the cheapest car insurance available in the United States.

A distant second place trophy goes to ‘The Big Easy’ with New Orleans coming in at $3,802. Philadelphia, Baltimore and Miami round out the top five most expensive places to insure a car, costing drivers $3,496, $3,168 and $2,959 respectively. The ten most expensive states to own a car are Hawaii, California, Alaska, Nevada, West Virginia, Connecticut, Louisiana, Washington, New York and Arizona.

Cheap Cities for Car Insurance

It appears that the best way to lower your insurance premiums is to pack up your truck and move to Ohio. Surprisingly, several of the top five cheapest places to insure a car are cities that you have probably heard of.

At $865 a year, Wapakoneta, Ohio can boast the most inexpensive car insurance premiums in America. Ohio makes another appearance on the list with Fairfield coming in at the economical price of just $951. None of the five cities on the low-priced list even breaches the $1,000 mark. Portland, Roanoke and Lafayette offer incredibly low rates at just $953, $963 and $982 respectively.

Tips for Cheaper Insurance

If you are one of the unlucky drivers commuting around Detroit, fear not. There are some things that you can do to help lower your premiums:

1. Choose a Higher Deductible– Raising your deductible by just $250 can save you 30% on your yearly premium.

2. Get a Discount – Car insurance is a competitive industry and your company is likely to have dozens of different ways to save, like paying online or having multiple policies with the same company. Ask your insurance representative about all available discounts, and you’ll likely save a few dollars every month.

3. Shop Around – No matter how great you think your current rate is, there’s a good chance that a better rate is waiting for you. You do not have to wait for your current policy to end and you can probably get the same coverage for a better price.

4. Improve Your Credit Score – Most companies base your premiums in part on your current credit rating. A great score can mean a great rate on your vehicle insurance.

5. Ask about New Programs – Many of the larger insurance companies are trying to lower premiums by offering drivers an option to equip their vehicles with devices that will track driving habits and lower your rates for safe driving.

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