A new study has found that motorists living and driving in the Metropolitan Detroit area are paying a premium for being in the Motor City, with the most expensive insurance payments in the US.
According to research by Quadrant Information Services, the usual driver in the Detroit area needs to cash out around 165% more than the national average insurance price. That’s a huge markup from the second-placed New York metroplex residents, which only pay a 36% premium on their auto insurances.
According to the National Association of Insurance Commissioners, an average US motorist will give away to his auto insurer $797 annually. The figure though can vary wildly, as we need to take into account things like the driver’s age, sex and location, besides the driving record and the type of car he drives.
Insurers also take into account things like the area where the insured person lives – crowded urban areas tend to have more crashes and thefts, which reflects on the insurance quota. So, there’s no wonder that after Detroit and New York come Miami and Los Angeles in third and fourth place respectively.
On the other hand, the car owners in the Charlotte, North Carolina area have the lowest insurance premiums, on average 43% lower than the national average. Second cheapest comes Cleveland, 31% below the average and third ranks Pittsburg – down 24%.