Michigan Auto Insurance Among Highest in USA

Okay, admittedly this is likely going to be one of those stories where you think to yourself, “tell me something I didn’t already know!” We Michigan drivers are paying some of the highest automobile insurance premiums in the entire nation. That’s the sobering news from data released this month by the National Association of Insurance Commissioners (NAIC).

Michigan drivers, on average, paid $1,350 in 2014 for their auto insurance premiums, almost twice as much as drivers in the neighboring Great Lakes states of Ohio, Indiana and Wisconsin. 2014 is the most recent complete data year available at the moment.

Mark Fisk is spokesman for the Michigan Insurance Coalition. He says, “This study reinforces a harsh reality for drivers across our state: They pay some of the highest auto insurance premiums in the country.” Fisk adds, “It also shows that Michigan’s auto no-fault laws are in desperate need of reform to make car insurance more affordable for drivers across the state.”

Michigan is the only state in the country that requires drivers to purchase unlimited, lifetime medical benefits with their auto insurance policy, driving up the cost of auto insurance premiums. It’s no coincidence Michigan also has one of the highest rates of uninsured drivers in the country. As many as 21-percent of drivers in the state have no car insurance, either because they can’t afford it or are choosing to pay for other necessities like food, day care and housing. For some, their car insurance premiums are like a second mortgage.

Fisk argues, “Our antiquated auto insurance laws haven’t undergone significant reforms since they were enacted in 1973.” He contends, ”The Legislature must make common sense reforms to Michigan’s costly auto no-fault insurance laws to level the playing field for all Michigan drivers.”

According to NAIC data, drivers in Ohio paid $766 for car insurance in 2014, Indiana drivers paid $728 and drivers in Wisconsin paid $716, all considerably lower than that Michigan average insurance rate of $1,350.


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