Don’t Buy a House in These 5 US Cities with Rising Auto Insurance Costs
Written by
Karen Doyle
Edited by
Travis Woods
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There are a lot of things to think about when deciding where to buy a house. You want to understand the cost of living in the area you’re considering, and one budget item that’s becoming increasingly important to consider is auto insurance.
The price of auto insurance is rising nationwide, for a number of reasons. But there are five cities that are experiencing particularly high costs. Here’s what you need to know.
1. New Orleans, Louisiana
Louisiana insurers received approval for a rate hike in 2023, with one company raising rates by a third. This makes Louisiana the state with the highest average annual premium, at 2,724.
2. Fort Lauderdale, Florida
Insurance of all kinds is on the rise price-wise in Florida, and auto insurance is no different. The average annual cost is $2,553, and prices are up 24% over last year. At least some of the increase is due to the same factors that have sent homeowner’s insurance in Florida through the roof — an increase in weather-related disasters.
3. Wilmington, Delaware
Residents of Wilmington, and Delaware as a whole, have seen their car insurance premiums rise about 20% in the past year. The Delaware Department of Insurance blames increasing repair costs, supply chain issues, an increase in the number of accidents and more natural disasters for the increase.
4. Louisville, Kentucky
The state of Kentucky ranks fourth in the nation for the highest average annual car insurance premium at $2,104, after an increase oof about 20% over 2023 rates. One reason may be that Kentucky has more traffic fatalities (1.36 per million miles driven) than the national average (1.1 per million miles).
5. Kansas City, Missouri
Folks in Kansas City have seen their car insurance rates rise over 40% in the past year, and a state that was once affordable for drivers is now the fifth most expensive. Factors that could account for the rise in prices include an increase in the number of uninsured drivers and more natural disasters.
States Where Car Insurance Is the Cheapest
The state with the lowest average cost for car insurance is Maine at $949. Idaho is the second cheapest at $992, followed by Vermont at $1,053, Ohio at $1,083, and Wisconsin at $1,145.
How To Save Money on Your Auto Insurance
With rising costs, it’s more important than ever to be sure you have the right insurance coverage, and that you’re not paying for more than you need. Here are some ways to save on your coverage.
Eliminate towing and replacement vehicle coverage if you have more than one car in your household and you also have AAA or another roadside assistance plan.
Switch to compulsory coverage only. If your car is older, and fully paid off, and you could afford to replace it out of savings, you may only need liability coverage. This coverage pays for any damage you cause to someone else’s car or other property but doesn’t pay to fix your own car. Since you’ll be out of luck when it comes to damage to your car, be sure you only make this change if you’re fully prepared to repair or replace your damaged car out of your pocket.
Drive safely. The fewer accidents and moving violations you have, the higher your insurance premium will go.
Consider keeping your vehicle longer. The older your car gets, the less expensive it will be to insure in comparison. If you do replace your car, check the insurance rates before you buy – some cars are more expensive to insure than others due to high theft rates or fewer safety features.
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