Study: Michigan drivers pay the highest auto insurance rates in U.S.

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MICHIGAN (WJRT) (10/18/2018) - Michigan has the highest auto insurance rates in America for the fifth year in a row, according to a national study released Thursday.

Insure.com says drivers in the Mitten State pay 64 percent higher premiums than the national average.

“We hope this report serves as a wakeup call to the Legislature to fix Michigan’s broken, outdated auto no-fault system,” said Dyck Van Koevering, general counsel of the Insurance Alliance of Michigan.

The Insure.com study shows Michigan drivers pay an average auto insurance premium of $2,239 annually. The national average is $1,365.

Michigan’s neighbors in Indiana, Ohio and Wisconsin offer some of the lowest average insurance premiums in the country. The average cost for car insurance is $1,091 in Indiana, $1,084 in Wisconsin and $944 in Ohio.

“It’s imperative for the Legislature to pass real reforms to fix Michigan’s broken, outdated auto no-fault system and provide relief to drivers paying the highest auto insurance premiums in the nation five years running,” Van Koevering said.

Insure.com says Michigan is the only state that requires drivers to buy insurance covering unlimited lifetime medical benefits, which accounts for much of the additional premiums.

To reduce insurance costs, the study calls for the Michigan Legislature to:
-- Crack down on fraud and abuse.
-- Stop hospitals from charging crash victims significantly more.
-- Give consumers a choice in the level of medical coverage they carry with their auto insurance.