Car insurance is expensive in Michigan, and there are several reasons why. The state has some of the highest minimum insurance requirements of any state, which means higher prices for more required coverage. Additionally, Michigan has been criticized for its lack of an anti-fraud auto insurance watchdog, and the state has a high percentage of uninsured drivers. Rising medical costs have also driven up PIP expenses, which account for 42% of the average premium.
Proponents of maintaining unlimited coverage say it's a vital safety net for car accident victims, while critics say it increases insurance rates for some, especially in low-income communities like Detroit. Last week, Governor Whitmer ordered a study on non-driving factors in car insurance prices. Insurance companies claim that factors not related to driving can be highly predictive of whether someone will be involved in an accident. The Insurance Alliance of Michigan has encouraged the Michigan legislature to develop strict measures against auto insurance fraud.
In addition, most car insurance providers offer discounts to people who purchase several types of insurance from the same company. We recommend using comparison tools, such as MoneyGeek's car insurance cost calculator, which presents quotes from several providers at once to help you weigh your options. The average cost of car insurance in Michigan is 79% higher than the national average car insurance premium, and Michigan ranks 49th out of 50 for the most affordable car insurance rates in the U. S. Insurance experts say most fraudulent claims ask the insurer to pay family members of injured victims for patient care or to cover attendee care expenses.
This required additional coverage is one of the main reasons insurance premiums in the state are so high.