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Why Michigan Car Insurance Is So Expensive


Michigan currently has the most expensive auto insurance in the country. There are many things that go into the cost of auto insurance. In Michigan we have no fault auto insurance, which is very good coverage, but very expensive, and it can price some customers completely out of the market. This then causes rates to rise as well.

For auto insurance generally, here is what has been happening for the last two years:

  • Gas prices have been low, so more people are driving more miles.


  • The proliferation of mobile devices being used while driving has escalated, meaning there are more distracted drivers currently than ever before. When a distracted driver is in an accident, many times they have failed to act, so that the severity of the accident is higher than normal. We see accidents where someone has been rear ended, and that car never even hit their brakes prior to the crash.


  • Our auto insurance law prohibits auto carriers from negotiating rates with doctors and hospitals, so that medical bills from auto accidents are 2,3,4 and even 5 times higher than the same procedures would be if billed through a health insurance carrier.

As you can see, all of these factors have driven costs up for auto insurance companies. Once they start to lose money insuring autos, they either stop, which a number of small companies have done, or they raise rates, which all of them have done. By statute they have to keep enough money in reserve in order to pay claims, so the public experiences auto insurance premiums that are on the rise.

Solution: Bundling insurance is a huge money saver. Bundle your home, auto, and life insurance if you aren't already. Not to mention, there are many other deductibles you can claim to lower your auto insurance and save you money.


Call Jeff Duncan with questions you may have (269) 323-8353

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