Who is Spending Your Money – Insurance Companies or Politicians?

Last week the website Nerdwallet came out with a report on the most expensive U.S. cities for car insurance. Analyzing the data raises important questions about who is spending your money and whether you are getting the insurance protection you need? At the end of this post, please take the one-question survey. This survey will help us bring you the unbiased, insurance information you need to protect yourself and your loved ones.

While reading the report on the 20 cities with the most expensive auto insurance, it struck us that 75% of these cities are in states with no-fault insurance laws, but only twelve states (24%) have no-fault insurance laws. This seems out of whack.

The two sentence description of no-fault insurance is: Under no-fault laws, you file claims with your own insurance company, independent of who is at fault. Proponents of no-fault insurance say there are fewer lawsuits with this type of insurance, resulting in lower insurance costs and prices

Knowing that 15 out of 20 (75%) of the most expensive cities for auto insurance are in no-fault states, let’s also look at the 50 largest cities. In the 20 largest cities, only four (20%) are on the list of most expensive for auto insurance. Looking further, only four (20%) are in states with no-fault insurance laws.

Who is Spending Your Money?

This data suggests that no-fault insurance is unquestionably more expensive. That raises the important question of “who is spending your money – insurance companies or politicians?” The issues at play in this particular example are that: a) insurance companies lobby for no-fault laws under the premise of lower insurance costs and prices and b) politicians pass these laws, ostensibly to help the people of their state.  The final result is the people are paying more, not less.

Here at Injured Money we view these  issues as a serious problem for families throughout the U.S. Most of us live with a tight budget and unreasonably expensive insurance only makes our lives more difficult. Here at Injured Money, we aim to fix these problems by bringing social awareness of the issues along with simple steps for how you can protect yourself.

 Please fill out our one-question poll that follows so we can help you determine if the insurance you are buying is worth the money.

The 20 U.S. cities with the most expensive auto insurance:

1. Detroit, MI ($10,723) – no fault
2. New Orleans, LA ($4,309)
3. Grand Rapids, MI ($4,042) – no fault
4. Newark, NJ ($3,525) – no fault
5. Baton Rouge, LA ($3,363)
6. Hieleah, FL ($3,271) – no fault
7. Jersey City, NJ ($3,266) – no fault
8. Louisville, KY ($3,255) – no-fault
9. Miami, FL ($3,168) – no-fault
10. Philadelphia, PA ($2,930) – no-fault
11. Shreveport, LA ($2,901)
12. Chicago, Il ($2,859)
13. New York, NY ($2,712) – no-fault
14. Boston, MA ($2,861) – no-fault
15. Tampa, FL ($2,663) – no-fault
16. Lexington, KY ($2,652) – no-fault
17. Las Vegas, NV ($2,618)
18. Minneapolis, MN ($2,602) – no-fault
19. St. Paul, MN ($2,554) – no-fault
20. Honolulu, HI ($2,515) – no-fault