Cities with the Worst Insurance Environments

New Orleans takes the top spot on our list largely due to the city's natural disaster risk score of 99.52, as well as the high percentage of homes located in a floodplain. The biggest risk factors in the area are hurricanes, landslides, lightning, hail and heat waves. Louisiana drivers also experienced a 27% increase in auto insurance rates between 2023 and 2024.

• Dropped coverage (by state): Yes
• Natural disaster risk score: 99.52
• Increase in auto insurance rates (by state): 27%
• Percentage of occupied housing units in floodplains (by state): 18.93%

San Jose has the highest natural disaster risk score among all the cities we analyzed, coming in at 99.94. The biggest risks include earthquakes, landslides and heatwaves. California also has a high percentage of homes located in floodplains, which totaled over 14%. Although California saw a 20% increase in auto insurance premiums, that number is the lowest of all our top 10 entries.

• Dropped coverage (by state): Yes
• Natural disaster risk score: 99.94
• Increase in auto insurance rates (by state): 20%
• Percentage of occupied housing units in floodplains (by state): 14.6%

Los Angeles has a natural disaster risk score of 99.93, which is just under San Jose and in the #2 spot overall. The city is particularly prone to earthquakes, and while FEMA did not assign a wildfire rating, the L.A. area experienced rare winter wildfires in January 2025 that destroyed over 12,300 structures and over 40,000 acres.

• Dropped coverage (by state): Yes
• Natural disaster risk score: 99.93
• Increase in auto insurance rates (by state): 20%
• Percentage of occupied housing units in floodplains (by state): 14.6%

Also located in southern California, Riverside has a slightly lower natural disaster risk score than San Jose and L.A., but it's still high at 99.78. Like other cities in the state, it has a high risk of earthquakes, plus a moderate risk of heat waves and landslides.

• Dropped coverage (by state): Yes
• Natural disaster risk score: 99.78
• Increase in auto insurance rates (by state): 20%
• Percentage of occupied housing units in floodplains (by state): 14.6%

Sacramento, California's capital city has a similarly high natural disaster risk score of 97.97, largely due to earthquakes. The risk of landslides is also high in this part of northern California.

• Dropped coverage (by state): Yes
• Natural disaster risk score: 97.97
• Increase in auto insurance rates (by state): 20%
• Percentage of occupied housing units in floodplains (by state): 14.6%

San Francisco's risk score is also quite high: 96.68. Again, the reason is due to earthquakes. In fact, the city and surrounding areas experience about 5,000 earthquakes a year due to its location on the San Andreas fault line.

• Dropped coverage (by state): Yes
• Natural disaster risk score: 96.68
• Increase in auto insurance rates (by state): 20%
• Percentage of occupied housing units in floodplains (by state): 14.6%

San Diego sits farther down the California coastline and scored a 93.63 in terms of risk of natural disasters. Like other areas of the state, the city is particularly prone to earthquakes and wildfires.

• Dropped coverage (by state): Yes
• Natural disaster risk score: 93.63
• Increase in auto insurance rates (by state): 20%
• Percentage of occupied housing units in floodplains (by state): 14.6%

Heading farther up the West Coast, we reach Seattle with a natural disaster risk score of 99.67 — the fourth highest of the cities we ranked. In addition to earthquakes, the city is also at risk of volcanic activity, both of which may contribute to insurance policies being dropped in Washington. The state also experienced a whopping 56% jump in auto insurance prices. The good news is that Washington has the lowest percentage of housing units located in floodplains.

• Dropped coverage (by state): Yes
• Natural disaster risk score: 99.67
• Increase in auto insurance rates (by state): 56%
• Percentage of occupied housing units in floodplains (by state): 1.33%

While Texans haven't had to worry about dropped coverage in the state, Houston has one of the highest natural disaster risk scores in the nation. Its score of 99.51 is due to hurricanes, riverine flooding, landslides, and tornadoes. On top of that, auto insurance rates have increased 59% statewide.

• Dropped coverage (by state): No
• Natural disaster risk score: 99.51
• Increase in auto insurance rates (by state): 59%
• Percentage of occupied housing units in floodplains (by state): 9.17%

Minneapolis's insurance environment is largely impacted by major storms. Its 87.59 natural disaster risk score is due to high risk of strong winds, tornadoes, and hail. That could be an explanation for the state's 48% increase in auto insurance rates in a single year.

• Dropped coverage (by state): Yes
• Natural disaster risk score: 87.59
• Increase in auto insurance rates (by state): 48%
• Percentage of occupied housing units in floodplains (by state): 3.26%