Peace of mind comes at a very high price, if you live in Detroit, Michigan. This city is the most expensive city for car insurance, with New Orleans and Philadelphia coming in second and third. Car insurance is the most highest expense associated in owning your car. Most of us, as a necessity need a car to get back and forth to work. It is amazing that Michigan, and Louisiana can charge these high prices for car insurance and can get away with it legally to people who live in their state. There are 700,000 souls that live in the motor city and the prices for car insurance is astronomical.
Michigan allows insurance companies to charge different rates for people who have bad credit, and low education. It is one of the last states to use other criteria besides your driving record to determine how much you will pay for your car insurance. It is a rip-off. Car insurance companies are making huge profits.
In Detroit, the average annual premium runs $5,928.00. In New Orleans, it runs about $3,802, and in Philadelphia it is a whopping $3,496.00. States govern their own rates, therefore you will see variations from state to state.
It seems ridiculous, however, there are many people who drive without insurance. In Philadelphia, uninsured motorists claims are over tens times the Pennsylvania state average. 38% of motorists in Philadelphia are uninsured. That is one of the main reasons for the high prices, besides the state is a no fault state. People there just cannot afford to pay for insurance. In New Orleans, it is the same kind of scenario. Too many people drive without insurance therefore, insurance rates are as high as they can be legally. It is a viscous circle with no happy medium in site.
There are ways to ensure that you can get somewhat affordable insurance. You will have to work hard to obtain a discount. First thing to do is to raise your deductibles. Then make sure you are getting all available discounts that you can get. Shop around. Use the internet to really shop for affordable prices that still meet the coverage that you need.
Car insurance is important! It’s meant for making sure you are covered should anything go wrong. Insuring risk on automobiles is the wisest thing to do no matter what the cost. It does give you security. Unfortunately, we have so many that cannot afford car insurance, they make those of us who can, pay for them too. If you live in these cities or are planning on moving to Detroit, New Orleans, or Philadelphia be aware of the huge price tags on the car insurance there.