High Auto Insurance Rates Plague Michigan, Legislators Seek Relief

Cameron Aubernon
by Cameron Aubernon

Michigan is the state with the most expensive insurance in the United States. However, a potential overhaul could bring down those costs.

As it stands, Michigan’s motorists pay 136 percent above the national average of $815 a year for a policy, with the state’s overall average coming to $1,923/annually, Detroit Free Press reports. Additionally, Wayne County is the most expensive place to have a policy in Michigan, averaging $2,789 — 45 percent above the state’s average — per year.

According to insuranceQuotes.com senior analyst Laura Adams, the reasons behind Michigan’s No. 1 rank are due to it being the only state to offer unlimited lifetime personal injury protection, and because it has an unusually high amount of uninsured motorists.

That said, the state’s legislators are planning to retune the no-fault auto insurance system, which would maintain the unlimited benefit for those who suffer injuries costing over $545,000, but would place caps on other parts of the system, such as rates for home health care providers. The reform is expected to be passed sometime within the week.

[Photo credit: Angela/ Flickr]

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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9 of 105 comments
  • Bimmer Bimmer on Apr 27, 2015

    What are they all complaining about!? Insurance costs a lot more if you live in a Soviet Ontario! Especially if you live in Brampton. I live south of Brampton and just received a letter for my annual renewal at... $3,000 for the minimum legal required coverage (1-way with $1K deductible and $1 MLN liability) for a... 14 year old domestic (that at the time had 5 star crush rating and one of the lowest theft rates) that I'm about to replace.

    • See 2 previous
    • Brenschluss Brenschluss on Apr 28, 2015

      @MPAVictoria "$954 a month for full coverage on a 2012 S80" Please say that's a typo.

  • Mikey Mikey on Apr 27, 2015

    Up until 2 years ago , I would pull the "road insurance" and keep fire and theft on the Mustang from Oct 1 to April 1. Then when the new law, came in, no liability insurance, means no plate sticker. I just keep it fully insured, all year now.

  • VenomV12 VenomV12 on Apr 27, 2015

    I am skeptical about Michigan having the highest car insurance rates. Buddy of mine has a house in Oklahoma and a house in Michigan, both the same kind of prices, neighborhood, distance from major metros etc, one car registered at the house in Oklahoma and one at the house in Michigan both cars cost roughly the same and his insurance for the one in Oklahoma is much higher than the one in Michigan.

    • MBella MBella on Apr 28, 2015

      For some reason, the differnce really seams to be on multiple cars. When I moved to Washington, my Subaru at the time only cost about $25 less a month. When I added the Miata, that only added about $60 a month to my policy. In Michigan, when I had my sister's Cruze on my policy, The Cruze cost an additional $125 per month. Your friend would do better changing his legal residence to the cheaper state and insure and register both cars there.

  • Thegamper Thegamper on Apr 28, 2015

    Not much will change under the system as being proposed. The problem is the onus of costs associated with catastrophic claims needs to be shifted to the individual, not the insurance system. I suspect in most other states once the policy limit is exhausted, a seriously injured motorist must use health insurance, medicare or Medicaid. This is a band aid for a bullet wound unfortunately. Why not just study states with reasonable systems and implement best policies. In any event, I pay $3000 per year for broad form collision/full coverage on two vehicles with highest policy limits, over a million I believe. I live in Oakland county Michigan, which is in the Detroit Metro area and actually work in Detroit. I feel like it is basically another car payment, but when I look a bit closer, I suppose it is not insane in terms of cost. But 10 years ago I was paying half that. I can say that somewhere upwards of 75% of case filings in wayne county are PIP auto injury claims. I think some legislation/tort reform is probably in order to reign in this runaway litigation.

    • Bball40dtw Bball40dtw on Apr 28, 2015

      PIP and the MCCA is costing you about $500/year out if that $3000. PIP is not the problem.