In this article, we will reveal the city with the most expensive car insurance in the US. If you wish to look at our detailed rankings, you can go to the 20 Cities with the Most Expensive Car Insurance in the US.
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.
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.
City with the Most Expensive Car Insurance in the US
1. Roosevelt, New York
Average Annual Full Coverage Premium: $3549
Roosevelt is situated on Long Island’s South Shore in Nassau County, New York. It ranks first on our list of cities with the most expensive car insurance in the US. Drivers in Roosevelt pay an average of $3,549 annually for full coverage.
Discover which city secured the second spot. You can see the rest of the rankings for free here.
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Disclosure: None. This article is originally published at Insider Monkey.