Ask an Agent: Why are auto insurance rates so high in Michigan?

February 15, 2018
Auto Insurance, Michigan No-Fault,

Q: Why does Michigan have the highest insurance rates in the nation?


A:  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.


What can BHS Insurance help you with? We have over 25 associates dedicated to finding the best coverage for your life, home and auto needs. Request a quote online today.


Answered by:



     Al Kramer, Account Manager

      47 years’ insurance experience

      15 years at BHS Insurance

      Email me!