Q: Why are auto insurance rates so high in Michigan?

February 15, 2018

Answer:

Michigan has the best medical coverage in the nation with unlimited lifetime coverage. This coverage is under Personal Injury Protection (PIP). In 2000 PIP was 22% of our total premium. In 2014 that had changed to 52%. Rising medical costs and no cost containment has contributed to the increase.

We also have 1 in 5 people driving without auto insurance (20.3%) which is 4th worse nationally. A smaller pool of people insured leads to higher rates with fewer people to spread the risk of loss to.

The combination of the unlimited lifetime medical benefits with a high uninsured driver rate pushes Michigan to the highest auto rates in the nation.


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