Every month, when the auto insurance bills come in the mail, countless Michiganders heave a sigh of exasperation. With our car insurance rates coming in over 130% higher than the national average, we wonder why we’re paying so much and, more importantly, what we’re getting out of the deal. In the event of an auto accident, do we have better coverage than other Americans? If we’re injured in a car crash, will we receive higher payouts? In this post, we’re going to look at why Michigan’s citizens pay the highest auto insurance rates in the nation and how those rates affect them after an accident.
1. Michigan is a “no-fault” state
At its heart, “no-fault” insurance means that companies must pay the costs of any accident that their customer is involved in, no matter who is at fault. While this is a strong position for drivers, it does cause the price of insurance to go up, as the states with the highest insurance costs are all “no-fault” states.
2. Many people drive without insurance
Since the cost of insurance in Michigan is so high, many people drive without insurance. As a result, the price of insurance goes up… causing it to be unobtainable for people who want – but cannot afford – it.
3. Unlimited coverage for catastrophic injuries
Michigan is the only state that offers unlimited, lifelong coverage for catastrophic injuries. This stance, which strongly benefits drivers who are injured in auto accidents, is perhaps the primary reason that Michigan’s insurance rates are comparatively high.
At Giffels Law, we are the leading Kalamazoo auto accident attorney. With years of experience in navigating Michigan’s the often complicated nuances of our state’s insurance industry, we offer our clients the most thorough, professional and comprehensive legal services in the area. If you, or someone that you love, has been injured in a car accident, contact us today to discuss how we can work with you to achieve a favorable outcome.