A new study released this year shows that Insurance rates nationally are up 20% from 2011. How much more is it in Michigan?

We all need auto insurance to protect ourselves and others. In fact, we need insurance for everything, homeowners, auto, health. These are all required to be able to own these things and to even live in this day and age and Michigan insurance is outrageously expensive for cars. I have been searching for a new company because I was told that you should check your options every six months.

As I Searched I discovered the most expensive state is right here under our cars, Michigan. Not only are rates up 20% from 2011 but they are 20% higher here in Michigan and that may not be such a bad thing. Michigan is one of twelve states that offer no-fault insurance.

From the Insurance Information Institute:

The term "no-fault" auto insurance is often used loosely to denote any auto insurance program that allows policyholders to recover financial losses from their own insurance company, regardless of fault. But in its strictest form no-fault applies only to state laws that both provide for the payment of no-fault first-party benefits and restrict the right to sue, the so-called “limited tort” option. The first-party (policyholder) benefit coverage is known as personal injury protection.

So, in other words, it helps protect you from being sued for being "at-fault" in an accident that caused harm to other people or property.  Researchers also say it's because our no-fault insurance law provides a lifetime of medical care for someone seriously injured in a crash.

So why is Michigan still the highest? After all, there are 11 more states that require no-fault insurance. Michigan has the highest payout amount of $1 million dollars and the highest number of annual claims, with New York coming in second with a cap at $50,000. Of course, there are tons of other variables in there as well. Like where you live in Michigan, your driving record, the vehicle you have and the one I disagree with, your credit score.

I used the website "The Zebra" (same as where I found the study) to check my cost of insurance using Michigan and North Carolina (the lowest cost for insurance) with the address being the only thing I changed between the two. The average cost of just basic coverage in Michigan was $112 per month. using the same info but changing my state to North Carolina changed the amount to just $40 per month.

Check your own rates and see what you come up with.

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