Michigan auto insurance rates are highest of any U.S. state

Michigan Auto Insurance rates

Newly released survey results show that drivers in the state aren’t wrong about how much they’ve been paying.

It shouldn’t come as much of a surprise to know that Michigan auto insurance rates are high. Drivers in the state have been complaining about their premiums for years and lawmakers have made several attempts to alter this situation.

A recent survey has confirmed yet again that Michigan drivers are indeed paying more than any other state.

The survey confirmed that Michigan auto insurance rates are in fact the highest, on average, among any state in the country. Moreover, they’re climbing very quickly. Car insurance rates in Michigan have risen by 20 percent since 2011.

The most recent study results – which align well with a number of other data analyses concerning the auto insurance industry and premiums in the state – was conducted by thezebra.com. This research indicated that the average annual premium for car insurance in Michigan was $2,610. On the other end of the scale, North Carolina was paying the lowest premiums at approximately a third of the cost of coverage in Michigan. In North Carolina, the average annual car insurance premium was $865 per year.

A major contributor to the high Michigan auto insurance rates is its no-fault coverage law.

Michigan is the only state in which car insurance must provide drivers with unlimited lifetime medical care for people catastrophically injured in a crash. Industry experts have repeatedly pointed to that law as a cause for unnecessarily high rates because they claim that it invites a higher instance of fraud.

According to the report on the premiums analysis, drivers who shop for new auto insurance rates do so every six months to a year while on the hunt for lower premiums. The report also mentioned that the type of vehicle driven plays a large role in being able to find adequate coverage at a better price.

“Shop around for auto insurance premiums for the vehicle you might be considering purchasing before you actually buy that vehicle. A lot of people might forget to take that into consideration because in Michigan, those rates might be more than your car payment,” said Neil Richardson, one of the Michigan auto insurance rates research team members.

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