Why is my car insurance so expensive?

Automobile insurance rates are based on your driving record, the type of car you drive, the area where you live and the deductible you choose to pay. If you live in a city with one of the worst car theft rates, expect higher premiums (monthly payments). If you live in a state with high premiums to start, you might want to buy a used Honda Fit to save money on gas, instead.

funny accident car

We looked at a couple of different sources to compile our data like the National Insurance Crime Bureau (NICB). The bureau maintains a “Hot Spots” list of the cities with the highest rates of vehicle theft. The second source was a BankRate.com report about the most expensive premiums in the U.S. 

State with the most car thefts – California

California FlagCalifornia might brag about being pencil pushers, but they don’t mention how their cities top NCIB’s list of 10 cities with the worst car theft rates. In fact, the Golden State is home to eight of those cities.

  1. Modesto, CA
  2. Fresno, CA
  3. Bakersfield, CA
  4. Stockton/Lodi, CA
  5. Yakima, WA
  6. San Francisco/Oakland/Hayward, CA
  7. San Jose/Sunnyvale/Santa Clara, CA
  8. Vallejo-Fairfield, CA
  9. Spokane Valley, WA
  10. Redding, CA

State with the biggest premiums – Michigan

State of Michigan OutlineEven though car thefts aren’t as rampant in the Mitten as they are in California, Michigan does have the highest median annual premium at $4,490. That’s so high that the average Michigan household is paying eight percent of its annual income to car insurance. This is because Michigan requires unlimited personal injury protection and includes unlimited lifetime medical and rehabilitation benefits.

State population also plays a role in the cost of automobile insurance. Places like Alaska and Hawaii have fewer drivers which means fewer accidents and lower insurance rates. Their rate of theft is lower, too, which helps keep insurance rates small.

Most popular cars to steal

Driving a car sought after by thieves won’t help you save money on car insurance even though they might be some of the most reliable cars on the road. The National Insurance Crime Bureau’s Hot Wheels list features the most popular cars to steal and they’re also some of the most Followed cars on Mojo Motors.

  1. Honda Accord
  2. Honda Civic
  3. Ford Pickups
  4. Chevrolet Pickups
  5. Toyota Camry
  6. Dodge Caravan
  7. Dodge Pickups
  8. Acura Integra
  9. Nissan Altima
  10. Nissan Maxima

How to lower your car insurance

Lower Payments ArrowLower your premium by having a higher deductible, but be sure you are able to pay the deductible amount in case you get into an accident or someone steals your car. You already know your insurance premium is going to be higher if you live in an area with high rates of car theft or drive a car thieves like to steal. Look into car insurance rates to see if a change in coverage or provider could lower your monthly bill.