June 22, 2007
Average annual insurance premiums vary from nearly $5,100 in Detroit, Michigan to approximately $900 in Eau Claire, Wisconsin, according to the latest analysis by Runzheimer International, the Rochester, Wisconsin-based vehicle costing and total employee mobility management consulting firm.
At $5,072 per year for insurance coverage for a mid-size sedan driven within a 50-mile radius of the city, Detroit-area drivers pay approximately $4,000 more a year than drivers in Eau Claire, Wisconsin who pay only $870. 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.
Philadelphia and Newark also represent expensive locations for insurance coverage at $3,779 and $3,381, respectively. Los Angeles at $3,027 and Hempstead at $2,764 round out the Five Most Expensive U.S. Cities list (See table below).
Other areas, in addition to Eau Claire, are insurance bargains. The same driver, driving the same vehicle in Norfolk, Virginia pays only $954 for this all-inclusive coverage. In Raleigh, North Carolina vehicle owners pay $ 966; in Bismarck, North Dakota, $ 989; and in Burlington, Vermont $1,001.
"Urban policyholders throughout the country generally pay for more auto insurance due to the increased frequency and severity of insurance claims in larger cities," states Pete Kuhnmuench, Executive Director, Insurance Institute of Michigan. "In Michigan, our urban policyholders are further burdened by Michigan's mandatory automobile insurance law, which requires the purchase of unlimited medical benefits. In fact, Michigan is the only state to require unlimited medical benefits for all reasonable and necessary care."
"Annual insurance premiums - as well as other vehicle-related costs - can vary significantly from one location to another," comments Lee Czarapata, Client Relations Director in Runzheimer International's Business Vehicle Services Unit. "Companies with employees who drive for business purposes need to be aware of these cost differences to fairly and accurately reimburse drivers for expenses."
Table 1: Annual U. S. Insurance Rates:
Five Most Expensive Cities
| Rank |
City |
Annual Insurance Premium |
| 1. |
Detroit, MI |
$5,072 |
| 2. |
Philadelphia, PA |
$3,779 |
| 3. |
Newark, NJ |
$3,381 |
| 4. |
Los Angeles, CA |
$3,027 |
| 5. |
Hempstead, NY |
$2,764 |
Table 2: Annual U. S. Insurance Rates:
Five Least Expensive Cities
| Rank |
City |
Annual Insurance Premium |
| 1. |
Eau Claire, WI |
$ 869 |
| 2. |
Norfolk, VA |
$ 954 |
| 3. |
Raleigh, NC |
$ 966 |
| 4. |
Bismarck, ND |
$ 989 |
| 5. |
Burlington, VT |
$ 1,001 |
Please note: The business use insurance assumptions are as follows:
- $500 Deductible for Comprehensive
- $500 Deductible for Collision
- $100,000/$300,000/$50,000 Bodily Injury/Property Damage
- $100,000/$300,000 Uninsured Motorist
* * * * *
About Runzheimer International
Founded in 1933, Runzheimer International serves 60 percent of the Fortune 500. Recognized for providing innovative solutions relating to total employee mobility, Runzheimer is the global leader in business vehicle reimbursement programs, travel management consulting, employee relocation and compensation, virtual offices, and corporate aircraft.
For more information, contact Luella Dooley at Runzheimer International, Runzheimer Park, Rochester, Wisconsin 53167, (262)971-2277, ljd@runzheimer.com, www.runzheimer.com.
