Car Insurance Across the Country: Where Drivers Are Hit Hardest

Jennifer Liu
Posted

Michigan might be home to Motor City—but that doesn’t mean drivers in the auto-center of the U.S. get any breaks when it comes to their car insurance.

In fact, they actually shell out more for coverage than drivers in any other state.

A new report from InsuranceQuotes.com reveals that Michigan residents can expect to pay a whopping 136% more in premiums than the national annual average of about $815.

Compare this to the state with the second-highest rate, and even Rhode Island’s costs at 45% above the average don’t seem so bad.

So what’s driving up rates for the Great Lake State?

Other than standard components like driving history and age, state-specific factors—such as population density, natural disasters and cost of living—can play a role in coverage costs, according to InsuranceQuotes.com.

And in the case of Michigan, its no-fault auto insurance policies—where each company compensates its own policyholders no matter who is at fault—increase costs substantially.

While 11 other states do offer a similar policy, Michigan is unique in that it provides unlimited lifetime coverage for any medical expenses that result from an auto accident.

Another reason for Michigan’s high insurance premiums? The state’s large number of uninsured drivers—which raises rates for those who do carry coverage.

In addition to Rhode Island, other states with higher-than-average costs include New York, Delaware and Louisiana.

Looking for a lower rate? Consider heading to North Carolina, which carries the lowest average car insurance in the country—at 41% less than the national average. Other insurance-friendly states include Idaho, Ohio, Maine, and Wisconsin.

If you’re curious how your own state stacks up, check out an interactive map at InsuranceQuotes.com.