The rates of car insurance vary widely from state to state, and are based on many factors, such as the number of drivers, the number of vehicles on the road, and the cost of the vehicles.
According to the latest data available, the state with the most expensive car insurance rates is Michigan, with an average rate of $2,692. This is more than double the national average of $1,260. The reasons for Michigan's higher rates are numerous.
First, Michigan has some of the highest traffic volumes in the country, which contributes to higher accident risk, and thus higher overall insurance costs for all of its drivers. The state also allows for unlimited, no-fault insurance claims which can contribute to the higher premiums.
In addition, for coverage of the medical care of Michigan’s drivers, the state mandates that all drivers carry an auto insurance policy with certain coverage limits. This increased liability protection and no-fault medical protection can also add to the higher premiums.
Moreover, Michigan has a long history of auto insurance fraud. Fraudulent activities, such as staged accidents, false claims, and phony medical bills, are costing Michigan drivers millions of dollars each year in higher premiums to cover these losses.
Finally, Michigan has a higher-than-average amount of uninsured drivers, and these uninsured drivers increase the overall costs for both insured and uninsured drivers.
If you are a Michigan resident, you may be able to save on your auto insurance policy by shopping around for the best rates and looking for discounts. Additionally, you may be able to lower your costs by increasing your deductible or decreasing the coverage limits on your policy.
For more information on car insurance rates in Michigan, visit Risk.org: