Michigan ranked No. 1 for most expensive car insurance

GRAND RAPIDS, Mich. -- A new study shows Michigan drivers pay the most for car insurance compared to anywhere else in the U.S.

The study found that Michigan drivers are spending  20 percent more on car insurance compared to the national average. On average, Michigan drivers are spending an estimated $2,600 a year on car insurance.

When it comes to why Michigan is so expensive, researchers say it's because of our no fault insurance law because it provides a lifetime of medical care for someone seriously injured in a crash.

Experts recommend shopping around for new rates every six months.

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6 comments

  • Clucko

    They’ve been “working” on this for many years. If they did anything about it now, I’d be surprised. They’re giving this lip service, and nothing more.

  • GabachodeMichigan

    The old “you get what you pay for” applies to car insurance as well. Yes, car insurance is more expensive in Michigan than even New York and California. Yes, if you are going to be in a serious car injury where you sustain life-altering injuries, you want to have Michigan insurance.

    It would be nice if the whole country converted to No-Fault and then responsibility for damages caused by the operation of motor vehicles would be assumed by those owning the vehicles, instead of, as is case in about 33 states, transferring that responsibility to every tax payer in the US. For now, yes, folks in other states will pay somewhat less or a lot less, depending on whether their state has no-fault, modified no-fault, or traditional tort coverage.

    Before folks in Michigan get on the “we need to reduce premiums” bandwagon (a wagon on which I like to ride too), we need to tell our elected state representatives to make the Michigan Catastrophic Claims Association (MCCA) open its books to public review.

    By law, all of us are forced to contribute to the MCCA, but none of us have a right to know what they do with our money. Look at your premium statement and you will note that a hefty chunk of your premium goes to this mysterious entity known as the MCCA.

    The MCCA is an entity composed of appointed insurance industry professionals which collects premium dollars and banks them against future claims to make sure that claims get paid and insurance companies remain profitable. Now, given that we are all forced to contribute to this fund, just like we are forced to pay taxes, you would think that the use of those funds would be subject to public review through the Freedom on Information Act (FOIA) – you would be wrong to think so. While government use of our taxes is clearly subject to FOIA, the MCCA is not according to current law.

    Currently, the insurance industry screams that we need to “reform” (read: “destroy”) No Fault because “premiums are too high” (read: “we are not making enough profits”). Of course, they refuse to allow the public review the MCCA data which contains monies paid by the public to ensure that insurance companies remain profitable.

    I haven’t noticed any of the “big three” companies that issue approximately 95% of all motor vehicle policies in Michigan going out of business. Heck, every once in a blue moon, they actually issue refunds from the MCCA to current premium holders when the MCCA decides that it has “too much” of our premium dollars.

  • Benjamin K Herrera

    This is why some insurance companies have pulled out of Michigan…the rates are too high that no one can afford it as they used to. I remember when GEICO was here, now I when I went to get a quote from then it states they don’t service the State of Michigan.