Question: Why is auto insurance so expensive in Michigan?

Many factors contribute to why car insurance is so expensive in Michigan, including its no-fault status, additional insurance requirements, number of uninsured drivers, rate of insurance fraud, claims processing practices and personal injury lawsuits.

Does Michigan have high car insurance rates?

Car insurance is expensive in Michigan because the state has some of the highest minimum insurance requirements of any state. That means higher prices for more required coverage. Michigan drivers pay an average of $7,161 per year for full-coverage insurance.

Are Michigan car insurance rates going down?

In 2020, Michigan’s car insurance rates dropped 18% statewide and 19% in Detroit from the previous year. But compared to the rest of the U.S., Michigan drivers still pay a lot more to insure their cars. The nationwide average annual premium in 2021 was $1,529.

How expensive is car insurance in Michigan?

In Michigan, the average cost of auto insurance is $2,309 per year for full coverage, whereas minimum coverage averages $948 per year. Every driver pays a slightly different rate based on certain factors.

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What city in Michigan has the cheapest auto insurance?

Cheapest Auto Insurance in Michigan

That’s a big reason why Georgetown, a suburb of Grand Rapids, was found to have the lowest auto insurance rates in the state. On average, a Georgetown driver pays $1,294 per year for coverage, which is 23% lower than the statewide average.

Why is insurance so much in Michigan?

Because Michigan is a no-fault state, drivers must have personal injury protection (PIP) coverage, which covers financial losses regardless of who is at fault in an accident. This additional required coverage is one of the main reasons insurance premiums in the state are so high.

Should I keep unlimited PIP Michigan?

You, not the insurance company, should be in the driver’s seat when it comes to your health and medical care after a car accident. That’s why we recommend that Michigan drivers decline the managed care option when they choose the No-Fault PIP option with unlimited medical benefits in their auto insurance policies.

Is Michigan No-Fault Insurance going away?

Today, Michigan drivers are required by law to have a no-fault automobile insurance policy that includes Personal Injury Protection (PIP) benefits. … On July 2, 2020, many changes to the existing no-fault auto insurance law will take effect, including giving Michigan drivers a choice in their level of PIP coverage.

Is Michigan the only state with no-fault insurance?

Which states are no-fault states? In the United States, there are 12 no-fault states, including Florida, Michigan, New Jersey, New York, Pennsylvania, Hawaii, Kentucky, Massachusetts, Minnesota, North Dakota and Utah.

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Is Michigan still a no-fault state?

NO-FAULT INSURANCE is required by law in Michigan. … It is against the law to drive or let your car be driven without no-fault insurance. If you have an auto accident, no-fault insurance pays for your medical expenses, wage loss benefits, replacement services, and the damage you do to other people’s property.

Why is Geico not available in Michigan?

It does not apply to moving cars or to accidents that take place outside of Michigan. Additionally, Michigan is a no-fault state, meaning that drivers file most injury claims with their own PIP coverage.

How much does it cost to insure a 100K car?


Coverage Level Average Annual Premium
$100K/$300K/$100K Bodily Injury/Property Damage — Liability-Only $802
$100K/$300K/$100K Bodily Injury/Property Damage — $1,000 Comprehensive/Collision $1,527

Why is no-fault insurance so expensive?

The sources of higher costs include: Twice the number of people are covered under no-fault because both the innocent victim and the person who caused the accident are paid.

Which state has the highest car insurance rate?

Amongst all the states, Louisiana is the most expensive state with an average auto insurance premium of $2,839 per year, a 19% increase in rates from 2020.

Car insurance rates by state 2021.

Rank State Average premiums
1 Louisiana $2,839
2 Michigan $2,112
3 Florida $2,082
4 California $1,966

What is the minimum coverage for auto insurance in Michigan?

The law requires minimum bodily injury liability coverage limits of $250,000 per person and $500,000 per accident, but drivers may choose to purchase lower limits of $50,000 and $100,000.

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How much is PLPD in Michigan?

PLPD insurance in Michigan costs $2,200 to $3,000 or more per year, according to studies. Premiums vary in different parts of the state. Detroit has some of the highest PLPD rates in Michigan, as well as nationally, with premiums averaging more than $5,000 per year.