Michigan has the Highest Insurance Rates in America

Insurance

Recent research shows that Michigan Drivers pay more for car insurance than anywhere else in the United States.

Michigan is infamous for its expensive car insurance, topping Insure.com’s annual state ranking for six years in a row. High annual premiums are mainly due to Michigan’s no-fault insurance system, which gives crash victims unlimited lifetime coverage of medical bills.

Why so expensive?

On average, Michigan residents pay an annual premium of $2,611, an increase of $372 from last year. Residents that are out of state save an average of $1,154 each year from not living in Michigan.

Low-income communities are exposed to even higher rates. Residents in Detroit pay an average annual premium of $5,414.

Ninety-seven percent of Michigan’s ZIP codes exceeds the federal government’s definition of affordable. A more significant proportion of residents, particularly in low-income communities, end up driving without insurance.

Roughly 20 percent of Michigan drivers would rather go without insurance than pay the expensive fees. Michigan is the fourth highest stae in the country for uninsured drivers.

The most expensive car insurance states are:

  1. Michigan ($2,611)
  2. Louisiana ($2,298)
  3. Florida ($2,219)
  4. Oklahoma ($1,966)
  5. Washington, DC ($1,876)

When a person has a serious injury, insurance companies don’t cover the entire cost. A portion of insurance premiums funds the Michigan Catastrophic Claims Association, which includes costly medical bills for crash victims.

Michigan drivers are paying the highest rate in state history, of $192 per vehicle. This price funds the MCCA. This fee is expected to jump to $220 on July 1, making the cost even more expensive.

In Michigan, the average cost of a personal injury protection claim was more than six times the national average in 2017. According to the Insurance Research Council, prices are increasing nearly twice as fast.

Michigan has a large amount of deceit in the system, with people declaring their medical issues are more severe than in reality.

What you can do

Michigan residents should pay their bills on time, keep a clean driving record, and try to prevent having any gaps in their insurance record. Also compare rates among several insurers, although prices in Michigan areas not competitive as in other states.

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