From the Denver Post:

Eli Lehrer, president of the nonprofit research group The R Street Institute, said there is a correlation between insurance rates and population density — and thus traffic density. “When you have more cars on the road, you have a greater likelihood of accidents and claims.”

This explains why cities like Los Angeles and New York have among the highest insurance rates, he said.

New York ranked second among the 25 cities with premiums that averaged 36 percent above the average. Los Angeles ranked fourth with premiums 25 percent above average.

State regulations also influence prices, Lehrer said in the study.

“Metropolitan areas centered in Illinois — where there’s no rate regulation — and Ohio — where there’s very little — have lower average rates than those in California, where rates are regulated in a great detail,” said Lehrer.


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