Auto insurance

Report: Michigan Retains Rank Among States With High Auto Insurance Rates

Despite a recent drop, a new report still places Michigan among the states with the most expensive auto insurance rates. recently released its annual report on car insurance rates by state, and Michigan ranked 4th on the list.

According to the report, the national average for full-coverage auto insurance is $1,682 for 2022. By comparison, Michigan drivers pay an average annual premium of $2,133.

These results indicate a decline from 2021, when Michigan ranked No. 2 on the list. The report cites 2019’s no-fault bipartisan reform as a factor in lower rankings compared to other states.

“Michigan uses a unique no-fault system that has resulted in exorbitant rates for years. Recent changes to their system are responsible for their drop to fourth place this year, according to the rankings,” the report states.

Erin McDonough, executive director of the Insurance Alliance of Michigan, said recent reforms have helped with the old “broken” no-fault system.

“Bipartisan no-fault motoring reforms have cracked down on fraud, curbed overcharging by medical providers and given consumers choice – while continuing medically necessary care and providing the highest injury protection coverage. of the country,” McDonough said.

McDonough also noted the $400 refunds received by 7 million Michigan drivers last spring as an indication of the benefits of the reforms.

As part of the bipartisan no-fault auto insurance reforms, insurance companies were required to reduce average medical injury protection (PIP) premiums statewide for eight years, which contributed to the savings, according to the Michigan Department of Insurance and Financial Services.

The states ranked higher than Michigan on the recent list are Florida, Louisiana and Delaware.

Ohio ranked as the state with the lowest fares for 2022.