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Study Finds Detroit Most Expensive, Nashville Cheapest for Auto Insurance

A new study published in USA Today illustrates that where a person lives has a big influence on how much it can cost to insure...
March 2, 2004

A new study published in USA Today illustrates that where a person lives has a big influence on how much it can cost to insure an automobile. Average annual insurance premiums vary from nearly $5,000 in Detroit, Michigan to under $1,000 in Nashville, Tennessee, according to the analysis by Runzheimer International, a Rochester, Wisconsin-based management consulting firm.

At $4,945 per year for insurance coverage for a mid-size sedan driven within a 50-mile radius of the city, Detroit-areas drivers pay nearly $4,000 more a year than similar drivers in Nashville who pay only $978 for the same coverage. These rates are based on both male and female drivers over a minimum age with clean driving records and include comprehensive, collision, bodily injury, property damage, and uninsured motorist coverage.

Annual Insurance Rates by City, January 2004

Five Most Expensive Cities:
(Highest to Lowest)

Rank

City

Annual Insurance Premium

1.

Detroit, MI

$4,945

2.

Philadelphia, PA

$3,666

3.

Newark, NJ

$3,557

4.

Los Angeles, CA

$3,258

5.

New York City, NY

$2,762

Five Least Expensive Cities:
(Lowest to Highest)

Rank

City

Annual Insurance Premium

1.

Nashville, TN

$978

2.

Boise, ID

$990

3.

Richmond, VA

$1,038

4.

Burlington, VT

$1,039

5.

Evansville, IN

$1,045

Source:Runzheimer International

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