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Michigan Has The Highest Auto Insurance Rates In U.S.

Reports from Insurance.com show Michigan has the highest auto insurance rates in the U.S. Why is it that the poorest people in Michigan, the ones who face the biggest struggle to find jobs and get to those jobs, are paying the highest auto insurance rates in the country? Read our blog to find out why and if you live there, you should get informed about saving money on car insurance.

auto1 - car-insurance-comparison-74Michigan law requires you to have no-fault insurance, and it’s not cheap, but if you’re injured in an auto accident, it will pay unlimited medical and rehabilitation expenses. Also, insurance companies blame the high volume and high cost of claims, pointing to vehicle-theft rates in Detroit, for instance, that are almost seven times the national rate.

Michigan residents are legally required to purchase insurance, but Michigan is one of the few states that doesn’t give the state’s insurance commissioner the power to know what insurance companies are making and to determine whether or not it is excessive. Currently, Michigan’s no-fault policy means insurance companies pay for all reasonably necessary medical care and treatment for as long as you need it along with up to three years’ wage loss after you’re involved in an accident. But this level of care isn’t affordable for everyone. Credit scoring for auto insurance is legal in the state, meaning people with lower credit scores have to pay more. So the $300 more than the national average that Michiganders pay fails to take into account regions like Detroit and Flint where prices are inflated because of credit scoring.

Drivers are encouraged to use the Michigan Department of Insurance and Financial Services website for price-comparing tools, and ask for several discounts that could save them some money.

Check our webpage for more info and free car insurance quotes.  Get free quotes!