In this article, we will take a look at 20 cities with the most expensive car insurance in the US. You can also check out the 15 Best Auto Insurance Companies Heading into 2024.
The US car insurance industry is navigating a period of change driven by several key trends. One major factor is rising claim severity. As pandemic restrictions eased and traffic returned to pre-pandemic levels in 2022, LexisNexis Risk Solutions reported a rise in all claim parameters. This included a concerning increase in the number of totaled vehicles.
Around 27% of collision claims in the first nine months of 2022 were total losses, compared to 24% for the entirety of 2021. If the expenses to repair a vehicle exceed its actual cash worth, or if the damage is beyond repair, an insurance provider will classify a vehicle as a “total loss.”
According to Forbes Advisor, the average cost for full coverage car insurance is $2,150 per year. This represents a significant increase from 2014 when car insurance costs were much lower. In response to rising costs, consumers are becoming more price-sensitive. An estimated 12% of consumers planned to switch car insurance providers in 2023 due to rising rates.
The cost of insurance depends on various factors, one of which is the client’s location. Car insurance rates by city vary quite a bit, with insurance premiums exceeding $3,000 per annum in the most expensive cities. Similarly, the car insurance rates by state can surpass $2,000, on average, annually.
The US car insurance market is dominated by a handful of major players. In fact, the top 10 companies control a whopping 77% of the market share. Familiar names like The Progressive Corporation (NYSE:PGR), Allstate Corporation (NYSE:ALL), and The Travelers Companies Inc (NYSE:TRV) lead the pack, offering a wide range of coverage options to American drivers.
The Progressive Corporation (NYSE:PGR) has solidified its position as a leading force in the US car insurance market, ranking as one of the largest providers in the country since 2022. The earnings per share (EPS) of 72 cents reported by The Progressive Corporation (NYSE:PGR) in April 2024 reflect an increase of around 118% from the same period last year.
Allstate Corporation (NYSE:ALL) is another major player in the US insurance market, offering a wide range of protection for everyday needs. Allstate Corporation (NYSE:ALL) has been termed as a viable option for dividend seekers. They boast a strong track record of consistent payouts, having delivered dividends to shareholders for the past 14 years. The company offers an annual dividend yield of 2.23% as of May 24.
The Travelers Companies Inc (NYSE:TRV) is another major company in the industry that offers a wide range of insurance options. It is also actively involved in charitable work. According to the company’s annual community report, The Travelers Companies Inc (NYSE:TRV) made donations exceeding $240 million in 2023.
You can also check out the 15 States with the Most Expensive Car Insurance in the US here.
(Photo by Justin Sullivan/Getty Images)
Our Methodology
To shortlist the 20 cities with the most expensive car insurance in the US, we consulted credible sources such as Bankrate and Forbes. We have ranked the cities in ascending order of their annual full coverage premiums, as per Bankrate. A standardized profile was used to ensure consistency for the full coverage rate quotes. This profile represents a 40-year-old male and female driver, both possessing a spotless driving record along with a good credit history.
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20 Cities with the Most Expensive Car Insurance in the US
20. Cranston, Rhode Island
Average Annual Full Coverage Premium: $2180
Cranston sits on the western shore of Narragansett Bay in Rhode Island, neighboring Providence. In 2020, there were 66 reported fatal car crashes in Rhode Island, up from 41 in 2015. The average annual cost for full coverage car insurance in Cranston is $2,180.
19. Hutchins, Texas
Average Annual Full Coverage Premium: $2251
Hutchins is a city in Dallas County, Texas, known for having the highest car insurance rates in the state. The primary reason for these rising insurance rates is the increasing number of claims in recent years. Insurance companies are hiking prices to cover the costs of payouts connected to these claims. The average annual cost for full-coverage insurance in Hutchins is $2,251, which is higher than the national average.
18. Florissant, Missouri
Average Annual Full Coverage Premium: $2270
Florissant is a historic city in St. Louis County, Missouri, and a key part of the Greater St. Louis region. In Florissant, the average annual cost of car insurance is $2,270 for full coverage and $696 for minimum coverage. While the rates for drivers with clean records are relatively lower, the actual cost varies based on the driver’s record and the chosen level of coverage.
17. Lanham, Maryland
Average Annual Full Coverage Premium: $2270
Lanham is located in Prince George’s County, Maryland. Car insurance in Lanham costs an average of $2,270 per year for full coverage. Several factors can influence premiums, including individual driving history and state-specific variables like population density and traffic congestion. Maryland is one of the most expensive states for car insurance.
16. Aurora, Colorado
Average Annual Full Coverage Premium: $2329
Aurora is Colorado’s third-largest city, with a population of more than 398,000. Colorado’s car insurance premiums have risen for several reasons, such as frequent hailstorms, a high number of car thefts per capita, rising repair costs, and sky-high claim costs.
15. Delaware City, Delaware
Average Annual Full Coverage Premium: $2356
In Delaware, weather changes, such as storms and tropical cyclones, are becoming highly frequent. Delaware drivers pay an annual cost of $2,356 for full coverage, making it one of the top 15 cities with the most expensive car insurance in the US.
14. Forest Park, Georgia
Average Annual Full Coverage Premium: $2427
Forest Park is located in Clayton County, Georgia. Car insurance rates are rising across Georgia. Between 2023 and 2024, the average cost of full coverage rose by 26%. Currently, drivers in Georgia pay $2,427, on average, for full coverage.
13. Glenolden, Pennsylvania
Average Annual Full Coverage Premium: $2431
Glenolden is located in Delaware County, Pennsylvania. The annual average cost of car insurance in Glenolden is $2,431 for full coverage. There were 1060 fatal crashes reported in 2020 in Pennsylvania, as compared to 1003 fatal crashes in 2017. Glenolden is in the thirteenth position on our list of cities with the most expensive car insurance in the US.
12. Blue Diamond, Nevada
Average Annual Full Coverage Premium: $2438
Blue Diamond, located in Clark County, Nevada, has seen a rise in car insurance rates due to an increase in accidents, claims, and payouts. In the first half of 2023, rates rose by 36%. Compared to September 2022, auto insurance rates in Blue Diamond have increased by 18.9%.
11. Grosse Ile, Michigan
Average Annual Full Coverage Premium: $2452
Grosse Ile is located in Wayne County, Michigan. The average annual premium in Grosse Ile reaches a hefty $2,452. A significant factor behind these high costs is Michigan’s no-fault insurance law. Unlike traditional systems, no-fault states require drivers to carry Personal Injury Protection (PIP) coverage, which covers medical expenses and lost wages regardless of who caused the accident.
10. Saint Mary, Kentucky
Average Annual Full Coverage Premium: $2501
St. Mary, located in Marion County, Kentucky, reflects the broader trend of higher car insurance costs across the state. Kentucky drivers face an average annual premium of $2,501 for full coverage. This can be attributed to the state’s higher-than-average traffic fatality rate, which stands at 1.36 deaths per 100 million miles driven compared to the national average of 1.1.
9. Donner, Louisiana
Average Annual Full Coverage Premium: $2689
Donner, located in Terrebonne Parish, Louisiana, faces some of the highest car insurance rates in the country. Full coverage in Donner averages $2,689 annually, while even the minimum coverage costs are high at $956 per year. Donner is among the top 10 cities with the most expensive car insurance in the US.
8. Venice, California
Average Annual Full Coverage Premium: $2703
In Venice, California, the average annual cost for full coverage car insurance amounts to $2,703. This makes Venice the eighth most expensive city for car insurance in the US. California is also among the top 10 states with the highest car insurance rates.
7. Palm Coast, Florida
Average Annual Full Coverage Premium: $2753
Palm Coast is a charming city nestled along Florida’s Atlantic Coast in Flagler County. Florida ranks as the second most expensive state for full auto coverage and the most expensive for minimum coverage, with costs around $1,345 per year. Palm Coast drivers face particularly high car insurance premiums. This high cost can be attributed to several factors: frequent severe weather events leading to more accidents and claims, a higher number of litigated claims, and rising costs of parts and labor.
6. Islip Terrace, New York
Average Annual Full Coverage Premium: $2780
Islip Terrace, located on Long Island’s South Shore in Suffolk County, New York, experiences higher car insurance costs compared to many other areas. The average annual premium for full coverage in Islip Terrace is $2,780.
5. Nellis AFB, Nevada
Average Annual Full Coverage Premium: $2948
Nevada has seen an increase in traffic accidents in recent years, mainly in urban areas. Shortages of parts and limitations in labor within the repair industry have been affecting repair times and costs in the city, thereby adding pressure on insurance companies. The average annual premium for full coverage insurance in Nellis stands at $2,948.
