Michigan No Longer Most Expensive For Car Insurance

Michigan has a reputation for having the most expensive car insurance in the country. It's not unfounded. We did. For Years! But Michigan no longer is the state with the most expensive car insurance. We're second!

For seven years Michigan led the country in costs but after auto insurance reforms, the prices dropped enough for Michigan to move into second place. Erin McDonough, executive director of the Insurance Alliance of Michigan said in a statement reported by Fox 17,

This report from insure.com adds to the mounting evidence that no-fault reforms are working and saving Michigan drivers money. There are still plenty of Michiganders who haven’t renewed their auto insurance since the new law took effect, which means Michigan’s rates could be even lower by this time next year.

Michigan has made changes to the no fault insurance system that have resulted in lower rates. Michigan's rates dropped by 27% last year. Michigan's premiums cost on average $2,112 per year.

The Insurance Alliance of Michigan says they are:

A unified voice for the insurance industry, representing the majority of auto, home and business insurance companies operating in Michigan. We've also been at the forefront of the fight to reform Michigan's broken, outdated auto no-fault system for drivers paying the highest auto insurance premiums in the country.

Other states make it compulsory for you to buy liability insurance. In Michigan, it is compulsory to buy liability insurance along with personal injury protection and property protection insurance.

Google says that Geico offers the cheapest car insurance in Michigan, with an average annual study rate of about $1,200.

So, if Michigan is no longer first, who is? According to the report, Louisiana has the most expensive, with average premiums costing $2,839 per year.