The five most expensive municipalities have been identified for drivers’ premiums.
Owning and maintaining a vehicle can have a lot of cost associated with it, especially when you include the cost of auto insurance premiums and other upkeep and legally required expenses.
A recent study has identified the leading five cities in which car ownership can be the most expensive as a result of the increased auto insurance costs. The results of this study were recently released to allow drivers to discover whether or not they are paying some of the highest premiums in the country, simply because of the city in which they reside.
According to the 2012 study, these are the cities where customers pay the most for their auto insurance coverage:
• Detroit, Michigan – The average premium that was paid in Detroit in 2011 (the last full year for statistics, as 2012 is not yet finished) was $5,941, according to Runzheimer International. This city, where many American made vehicles first come into the world, is also the location where drivers pay almost $2,000 more than motorists in the next most expensive city. This high cost is blamed on the no-fault auto insurance system in the state, as well as the high number of vehicles and people in the area.
• Philadelphia, Pennsylvania – Drivers in this city pay the second highest premiums, with an average premium from 2011 was $4,076. This may not be nearly as high as Detroit, but it is notably more expensive than the estimated national average of $1,199 from that year. The cost is blamed on the high population of vehicles within the overcrowded city’s streets.
• New Orleans, Louisiana – Last year, motorists in this city paid an average of $3,599, not because of any issue with overcrowding, but because of a judicial ruling. Only claims that are greater than $50,000 can go before a court with a jury. The rest must be settled out of court.
• Miami, Florida – Here, drivers pay a significant $3,388 per year because of the no fault auto insurance regulation and a massive problem with fraudulent claims.
• Newark, New Jersey – The average driver in this city pays an auto insurance premium of $2,867. This expense is for similar reasons to Detroit and Miami, as the no fault insurance regulation in the state keeps the costs higher.
