Study shows difference in cost to insure a car based on geographic location

According to a study conducted by Property Casualty Insurers Association of America, it costs more than four times the amount to insure a car in an area called Detroit Metro Middle ($2,646.92) than to insure a car in suburban Lansing ($620.74). Drivers in the Detroit area are more likely to file a claim (21.2% file claims each year) than they are in the suburban Lansing area (13.2% file claims each year) and the cost of the average claim in the Detroit area was $12,493 as compared to claim in the Lansing area ($4,716). A car in Detroit is also seven times more likely to be stolen than a car in Lansing. If the geographic location of the policyholder were eliminated, someone living in the Detroit Metro Middle would see their rates drop by an average of 64% and a policyholder in suburban Lansing would see an increase of 55%.