Parking costs : $149 to $1,395 per month.Average full-coverage insurance : $4,355 per year.Average state-minimum insurance : $2,227 per year.And according to police statistics reported by a local TV station, car thefts rose by 45% from 2021 to 2022. The city has harsh winters, which can lead to collisions when roads are slick and leave roads in disrepair. It’s also because Detroit faces extreme weather and high levels of property crime. This is due in part to Michigan being the costliest state for both minimum- and full-coverage auto insurance. 10 for the most expensive car insurance rates in the country. Average full-coverage insurance : $7,159 per yearīased on our research, the Motor City’s average rates for full coverage put it at No.Average state-minimum insurance : $2,901 per year.Car insurance usually costs more in cities with more extreme weather or higher rates of property crime. In some cases, they aren’t even the biggest cities in their state. An interesting thing to note about the cities on this list is that most of them aren’t among the most populous in the country. But aside from Los Angeles and San Francisco, gas prices tend to hover around or slightly below the national average, which was $3.44 per gallon for regular at the time of publication. We also looked at the monthly or hourly cost of parking using SpotHero in each city, as well as average gas prices from AAA. We used the profile of a married 35-year-old driver with a clean driving record and good credit. To get average insurance premiums, we looked at 10 of the top providers in each city. If you drive in any of the cities below, you can expect to pay well above average for coverage. According to Quadrant Information Services, the national average for a full-coverage policy is $1,730 per year, while state-minimum liability insurance costs an average of $635 per year. The metric we weighed most heavily in selecting these cities was the cost of car insurance, so they’re listed in order of most expensive coverage to least expensive. UMBI: $20,000 per person and $40,000 per accident.UMBI: same as bodily injury liability limits.BI resulting in death: $50,000 per person and $100,000 per accident.BI not resulting in death: $25,000 per person and $50,000 per accident.Uninsured/underinsured motorist coverage (UM/UIM): $25,000 per person and $50,000 per accident.Property protection insurance (PPI): $1 million for damage in Michigan.Residual property damage liability (PD): $10,000 for damage in another state.Residual bodily injury liability (BI): $20,000 per person and $40,000 per accident.The table below lists the minimum-coverage requirements for the states featured in this guide, along with where they rank for average annual costs. As a result, these states have some of the highest average costs for minimum coverage. More than a dozen states only make some form of liability coverage mandatory.īut seven out of 10 cities on our list are in states that require additional types of auto insurance, such as personal injury protection (PIP). The types and amounts of car insurance a state requires greatly affect the cost of owning a car there. “Cities with high population density often have limited space for parking, high volumes of traffic and high risks of accidents, which can drive up the cost of car ownership,” he says.īecause of these elements of high-density living, Merry says, drivers “can expect to pay higher parking fees, congestion fees and insurance rates, and may also experience more wear and tear on their vehicles due to frequent stop-and-go traffic.” How Minimum-Coverage Requirements Affect Costs Jonathan Merry, co-founder and strategy director of the company behind Moneyzine, describes how population density affects the cost of owning a car. The most common factor for cities known to be expensive for car ownership is high population density. So auto repairs, medical expenses, tolls and parking all cost more than in less populous areas. In general, major cities tend to have a higher cost of living. There are many reasons why a city may be an expensive place to own a car.
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