Which cities have the highest car insurance rates?
If you’re thinking about relocating to a different city, transportation is one of the costs you’ll need to consider. While many larger cities—and some medium and smaller ones—have excellent public transportation systems, you may still not want to give your car up.
We’ve put together a list of some of the most expensive cities in the US to own a car. Whether you’re planning to move or simply want to know how much other people are paying in different parts of the country, this article will explain what makes vehicle ownership expensive in some US cities.
Before we start, it’s important to know that population density can affect the cost of owning an automobile. Cities with high population density often have high volumes of traffic, high risks of accidents, and limited space for parking, which can raise the cost of vehicle ownership.
Without further ado, here are the US cities with the highest car insurance rates!
1. Detroit
Based on our research, Detroit’s average rates for full coverage put it among the places with the highest car insurance rates in the US. This is due in part to Michigan being the most expensive state for both full- and minimum-coverage auto insurance.
Just to give you an idea, the former costs about $7,159 per year, while the latter costs around $2,901 per year.
It’s also because Detroit experiences high levels of property crime and extreme weather. The city faces harsh winters, which can leave roads in disrepair and lead to collisions when roads are slick. Moreover, according to official data, car thefts rose by 45% from 2021 to 2022.
2. New York
New York is the largest city in the US and consistently ranks as one of (if not the most) expensive places to live in the country. So it may not come as a surprise that keeping a car in the Big Apple is very pricey.
As one of the US cities with the highest car insurance rates, New York City is dense and large, and finding parking is usually difficult unless you live on the edges of some peripheral boroughs. The bad news is that these neighborhoods tend to have higher rates of car theft, per the New York Police Department. The official data also shows that auto thefts rose by 32% between 2021 and 2022.
The average state-minimum insurance in New York is $2,227 per year, while the average full-coverage insurance is $4,355 per year.
3. Bridgeport, Connecticut
Next on the list of the cities with the highest car insurance rates is Bridgeport, Connecticut. It may seem surprising that a midsize city is among the most expensive places to own a car in the US. However, Connecticut boasts an affluent population and plenty of upscale automobiles.
The state median household income is about 21% higher than the country’s median, and some surveys show that nearly 25% of the auto sales that occur in Connecticut are for luxury vehicles.
Connecticut drivers are subject to some of the highest taxes for car sales in the country: 6.35% for purchases under $50,000 and 7.75% for those above that amount.
As one of the cities with the highest car insurance rates, Connecticut has an average state-minimum insurance of $2,017 per year and an average full-coverage insurance of $4,019 per year.
4. Miami
Similar to Michigan, Florida is one of the most expensive US states for car insurance—according to some data, it’s No. 3 for full coverage and No. 4 for minimum coverage. You’ll have to pay $3,676 for the former, while the latter costs $1,782 per year.
As one of the places with the highest car insurance rates, Miami is the second most populous city in the Sunshine State, and it sits on Miami-Dade Country, which is one of the most expensive places in Florida.
Miami is famously known for having very bad traffic, high rates of car theft, limited public transportation, and expensive parking. There’s also Florida’s awful weather, which can damage vehicle parts like tires and batteries. All of this adds up to make Miami one of the cities with the highest car insurance rates.
5. New Orleans
When researching the most expensive states for car insurance, we learned that Louisiana is the fifth-most expensive state for full coverage. The average cost of it is $3,829 per year, while the average state-minimum insurance is $1,252 per year.
Among the factors contributing to the high cost of car insurance coverage are the number of uninsured drivers and the flooding and hurricanes the state experiences. These add up, making Louisiana a place that has some of the highest car insurance rates in the country.
While the city has passed legislation to stop auto lawsuit abuse, events involving car accidents have helped make insurance premiums high.
6. Tampa, Florida
Tampa, located on the Sunshine State’s west coast, gives Miami a run for its money in terms of car ownership costs.
According to the National Weather Service, Florida experiences more thunderstorms per year than anywhere else in the country. These storms, as well as the hurricanes that blow through the Gulf of Mexico, make Tampa pretty vulnerable to flooding, which can destroy a vehicle in many cases.
Those who live here and own an automobile have to deal with some of the highest car insurance rates in the country. The average full-coverage insurance is $3,383 per year, while the average state-minimum insurance is $1,579 per year.
7. Miami Beach, Florida
Miami Beach is a small island city connected to mainland Miami through bridges. It’s only around 7 square miles in size, and it’s densely built up. This can only mean one thing: parking is at a premium. But this isn’t the only thing that’s quite extensive here.
As one of the places with the highest car insurance rates, Miami Beach is prone to experiencing hurricanes. Most of the cities lie near or in areas that the Federal Emergency Management Agency considers to be in high danger of flooding.
High water can easily total a vehicle’s components, leaving the owner to pay for repairs or risk a rate increase for filing an insurance claim.
8. Boston
Boston comes next on the list of places with the highest car insurance rates. As the most populous city in Massachusetts, it often finds itself among the most expensive American cities.
The high cost of living in Boston translates into auto repair costs that are higher than in other regions of the country. It’s an old and highly populated city, so space—especially when it comes to parking—can be difficult to come by.
Another factor that contributes to the higher car insurance rates is Massachusetts’ high number of property damage and bodily injury claims per automobile in the country. That leads insurers to charge more for coverage.
9. Los Angeles
Los Angeles is a city made for driving. With nearly 23,000 lane miles of road, LA boasts the largest street system in the country. It’s also densely populated and has lots of cars, so its drivers endure some of the most awful traffic in North America.
It’s also one of the cities with the highest car insurance rates. The average full-coverage policy costs around $2,656 per year. Moreover, according to recent data, California routinely has the most expensive gas in the US, second only to Hawaii.
But that’s not all; the City of Angels also has a very high rate of vehicle theft, and its police department states that it accounts for around 18% of the crime there.
In other words, if you drive a car in LA, you’re subject to some of the highest car insurance rates in the country.
10. San Francisco
San Francisco also earns a spot on the list of US cities with the highest car insurance rates. For drivers who live there, this also includes higher parking and gas prices than much of the country experiences.
Covering around one-tenth the amount of land LA does, San Francisco has limited—and pricey—parking spots. Adding to the cost of vehicle ownership in the city is the fact that the San Francisco Bay area accounted for around 18% of California’s car theft in 2022. With high rates of vehicle theft come rising car insurance premiums.
If you’re planning on buying a car, here’s a guide that can help you decide between buying and leasing.
If you liked our article on the US cities with the highest car insurance rates, you may also want to read 10 Worst Cities to Drive In, According to New Studies.
