The average annual car insurance premium in Michigan increased by $443 since last year's survey, enough for the state to rise from second place tor first place and knock down Louisiana to No. 2.
And the reason it holds that No.1 spot is this: Michigan is the only state that guarantees unlimited personal injury protection (PIP) payments to people injured in car accidents. Insurance carriers pay up to $480,000 of PIP benefits, and the Michigan Catastrophic Claims Association (a private, nonprofit organization created by state law) reimburses insurers for costs above that amount. Auto insurers also must pay for up to three years for lost wages and replacement services.
Car insurance premiums in Michigan include an annual assessment by the association to pay for medical care when people suffer catastrophic injuries. The assessment through July 30 this year is $143.09 per insured vehicle. And that doesn't include what drivers have to pay for required PIP coverage.
"In some cases the cost of unlimited medical coverage will be 50 percent of the entire premium on a vehicle," says Jon Spalding, president-elect of the Michigan Professional Insurance Agents Association and president and CEO of Spalding Insurance Agency Inc. in East Lansing and Perry, Mich.
tate | Average annual premium |
| Michigan | $2,541 |
| Louisiana | $2,453 |
| Oklahoma | $2,197 |
| Montana | $2,190 |
| Washington, D.C. | $2,146 |
| California | $1,991 |
| Mississippi | $1,896 |
| New Mexico | $1,837 |
| Arkansas | $1,836 |
| Maryland | $1,807 |
| North Dakota | $1,794 |
| Connecticut | $1,786 |
| Rhode Island | $1,747 |
| Wyoming | $1,714 |
| Hawaii | $1,707 |
| South Dakota | $1,707 |
| Georgia | $1,670 |
| New Jersey | $1,663 |
| West Virginia | $1,633 |
| Kentucky | $1,629 |
| New York | $1,627 |
| Minnesota | $1,614 |
| Washington | $1,584 |
| Missouri | $1,563 |
| National average | $1,561 |
| Indiana | $1,518 |
| Colorado | $1,508 |
| Texas | $1,492 |
| Delaware | $1,489 |
| Florida | $1,476 |
| Nebraska | $1,470 |
| Pennsylvania | $1,468 |
| Kansas | $1,461 |
| Alaska | $1,454 |
| New Hampshire | $1,334 |
| Massachusetts | $1,328 |
| Idaho | $1,325 |
| Alabama | $1,306 |
| Oregon | $1,306 |
| Nevada | $1,300 |
| Illinois | $1,290 |
| Arizona | $1,280 |
| Utah | $1,272 |
| Virginia | $1,237 |
| Iowa | $1,179 |
| North Carolina | $1,154 |
| Ohio | $1,152 |
| Tennessee | $1,146 |
| Wisconsin | $1,128 |
| Maine | $1,126 |
| South Carolina | $1,095 |
| Vermont | $995 |
Spalding says Michigan's car insurance law also has some expensive quirks. Motorcycles are not considered motor vehicles in Michigan, so motorcyclists aren’t required to purchase auto insurance -- only minimal liability coverage in case they injure someone or damage property. But as long as they buy the state-required liability amount, they can still collect unlimited medical benefits if they’re injured in an accident with a car. In that case, the car driver’s policy would pay out first.
"If a high-powered motorcycle ran into me from behind and went over my car, my insurance would provide unlimited medical benefits for the motorcyclist," says Spalding.
While motorcyclists represent about 2 percent of the assessments paid into the Michigan Catastrophic Claims Association, they account for 7.3 percent of claims.Read More... For the latest updates PRESS CTR + D or visit Stock Market news Today
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