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About renewal time we all question the rates for insuring our vehicles.  Living in the fourth largest city in the country has advantages – energy, both the oil and loads of activities; great economy; reasonable housing prices; and warm weather most of the time.  The financial advisor site, NerdWallet, just published a new study analyzing the average annual auto premiums for 125 biggest cities in the U.S.  Wondering where Houston ranks?  At a not-so-bad number 28 with the annual rate of $2,211.62.

Study Methodology

To determine the most expensive cities, NerdWallet found the average car insurance rates in the nation’s largest cities using the profile of a 26-year-old male with no history of accidents, insuring a 2012 Toyota Camry with extended coverage.

Top 10 Cities for Expensive Car Insurance

We’re following David Letterman’s lead with our countdown.

10. Philadelphia, PA - Average annual premium: $2,930.53

Philadelphia drivers face unfavorable car insurance laws because Pa. is a no-fault state. The city also faces cold winters and year-round congestion that can contribute to high car-insurance costs.

9. Miami, FL - Average annual premium: $3,168.75

Right off the bat, Miami is in a state with no-fault insurance and is victim to hurricanes. Miami was ranked as the city with the rudest drivers in the U.S. in an AutoVantage “In The Driver’s Seat” Road Rage study. According to an Allstate study, Miami has the 9th worst drivers in the U.S., which translates into Miami drivers having a 58.4% greater-than-average accident frequency.

8. Louisville, KY - Average annual premium: $3,255.99

Kentucky is a state with no-fault car insurance laws. In addition, Louisville is more dangerous than 83% of U.S. cities, and has an especially high number of auto thefts, says the study, citing a Neighborhoodscout.com analysis.

7. Jersey City, NJ - Average annual premium: $3,266.63

New Jersey also has no-fault insurance. Drivers in Jersey City deal with high congestion and often face icy winters, the study says.

6. Hialeah, FL - Average annual premium: $3,271.86

Hialeah’s drivers pay the highest premiums in Florida due to the state’s no-fault insurance laws and frequent hurricanes.

5. Baton Rouge, LA - Average annual premium: $3,363.73

Locals endure traffic congestion and roads in disrepair in Louisiana’s capital.

4. Newark, NJ - Average annual premium: $3,525.43

In addition to no-fault state law, Newark’s high insurance rates may be a result of its close proximity to New York City. Newark drivers also deal with the snowy and icy winters of the north.

3. Grand Rapids, MI - Average annual premium: $4,042.42

Grand Rapids drivers suffer from Michigan’s no-fault insurance laws and bad weather, which deteriorates roads. Grand Rapids’ potholes cost motorists $1,027 a year, according to TRIP, a non-profit.

2. New Orleans, LA - Average annual premium: $4,309.61

New Orleans has some of the worst maintained roads in the country, NerdWallet says. Louisiana also has a law that allows drivers to directly sue insurance companies after an accident.

1. Detroit, MI - Average annual premium: $10,723.22

Car insurance premiums are the highest in the nation in the Motor City. Drivers in Detroit face high rates because of the city’s high crime rate and Michigan’s no-fault insurance system.

Curious about the least expensive cities?  Here’s a link to the list.  Spoiler Alert: the top 5 cheapest cities for car insurance are in North Carolina.  http://www.nerdwallet.com/blog/insurance/2014/02/03/best-cities-cheap-car-insurance

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