Two different studies are ranking Michigan at the top of the list of the country’s most expensive states for auto insurance. Only one of the studies said Michigan was the most expensive place to insure a vehicle, but both pointed to the state’s requirement of unlimited coverage for personal injuries as a key factor in its high rates.
The survey putting Michigan at number one also said that a (hypothetical) 40-year-old male driver with a clean record would be paying about $2,542/year for car insurance, which is more than 21% higher than the amount posted in the same survey (from insure.com) last year, beating out Louisiana, which was last year’s most expensive state. The same survey said that at $995/year Vermont was the least expensive state in which to insure an automobile.
The rate calculations were done by comparing policies from six major insurers in each state, and then adjusting for vehicle type and geographic differences, said the site’s managing editor Amy Danise.
The other study, a national survey released last December by the National Association of Insurance Commissioners, put Michigan further down the list, at only the 11th most expensive state. According to that report, the average premium in Michigan in 2008 was $1,032.
The executive directors of the Insurance Institute of Michigan, Pete Kuhnmuench, said on Monday that he expects the state legislature to begin the process of making unlimited personal injury protection optional instead of mandatory later this year, though this may be an extremely optimistic point of view, as Michigan Governor Rick Snyder and the state legislature seem to be focusing more on the creation and protection of jobs and other business-related issues.