Michigan’s auto insurance rates among most expensive in the U.S.

Lansing, Mich. – This week, Insure.com released their annual report of the most and least expensive states for automobile insurance in 2013, and Michigan has the second highest average car insurance rate in the nation with an average annual premium of $2,520. Louisiana is the highest state at $2,699 per car.

When Michigan’s rates are compared to our closest neighbors, the data shows that Illinois drivers pay 47 percent ($1,188) less, Wisconsin drivers pay 51 percent ($1,274) less, Indiana drivers pay 53 percent ($1,337) less, and Ohio drivers pay 56 percent ($1,414) less per car than drivers in Michigan.

“Michigan’s no-fault auto insurance system is in desperate need of reform,” said Kurt Gallinger, Chairman of the Michigan Insurance Coalition (MIC). “Michigan drivers are paying more than $1,000 more per car than the national average for auto insurance, and something has to change.”

The study cited the outrageously high cost of medical care charged to auto accident victims as the primary reason for Michigan’s skyrocketing auto insurance rates. The table below shows comparative average hospital billings for the same procedure, depending on the insurance coverage.

Fee Comparison

“The system can no longer allow hospitals, providers and brain injury clinics to engage in discriminatory pricing against citizens who are forced to purchase automobile insurance,” said Gallinger. “Controlling medical costs will save the no-fault system and make auto insurance more affordable while still providing the most generous automobile insurance benefits in the nation.”

Mandated, unlimited lifetime medical coverage, has increased the cost of auto insurance so it is unaffordable for nearly 20 percent of Michigan drivers who are currently uninsured.

For a copy of the full report, visit Insure.com.