U.S. markets closed
  • S&P 500

    +6.50 (+0.15%)
  • Dow 30

    +33.18 (+0.10%)
  • Nasdaq

    -4.54 (-0.03%)
  • Russell 2000

    -10.97 (-0.49%)
  • Crude Oil

    +0.65 (+0.89%)
  • Gold

    +0.80 (+0.05%)
  • Silver

    -0.26 (-1.16%)

    -0.0029 (-0.25%)
  • 10-Yr Bond

    +0.0500 (+3.55%)

    -0.0040 (-0.29%)

    +0.3840 (+0.35%)

    -427.23 (-1.00%)
  • CMC Crypto 200

    -35.86 (-3.25%)
  • FTSE 100

    -26.87 (-0.38%)
  • Nikkei 225

    +609.41 (+2.06%)

Michigan Car Insurance Rates are Sky High Thanks to its No-Fault System, Says Insurance Panda

Insurance Panda Recently Posted an Article that Examines Why Michigan Car Insurance is So Expensive

LOS ANGELES, CA / ACCESSWIRE / July 19, 2019 / The founders of Insurance Panda, a car insurance quote comparison tool based in New York City, are pleased to announce that they have just posted an article to their website that looks at why Michigan car insurance is so expensive.

To read the article in its entirety, please visit https://www.insurancepanda.com/3786/why-is-car-insurance-so-expensive-in-michigan/.

As the article noted, Michigan is consistently ranked as the most expensive state for car insurance. Drivers there pay almost $2,400 a year for their auto insurance; the next most expensive state is Louisiana, where people pay about $1,920 a year. To put this in further perspective, the article notes, the national average for car insurance is around $1,300-this means that drivers in Michigan pay about $1,100 more per year, on average, than people in other parts of the country.

As for why car insurance is so expensive in Michigan, the article noted the number one reason is the state’s no-fault car insurance system.

“Michigan, like Florida and other states, has a no-fault system that allows drivers to recover financial losses from their own insurance company regardless of fault,” the article noted, adding that this means a driver’s insurance company will pay for his or her medical expenses even when the driver is not at-fault for the collision.

Interestingly, the article points out, no-fault car insurance was originally introduced to lower insurance costs and reduce the chance of insurance fraud. But as is the case in Michigan and other states with no-fault systems, car insurance has actually ended up being far more expensive.

Another reason Michigan car insurance is so pricey, the article notes, is that personal injury protection (PIP) coverage is a requirement. Vehicle owners are required to buy PIP insurance that will cover the medical expenses of the person whose name is on the policy, as well as any household residents if they are also injured in an auto accident.

“PIP insurance is related to Michigan’s no-fault policies. Because Michigan is a no-fault state, drivers are required to cover their own medical bills regardless of fault, and that’s why drivers are required to have PIP,” the article noted.

About Insurance Panda:

Insurance Panda is an auto insurance quote comparison tool based out of New York City. Since its start in a small office on Madison Avenue, Insurance Panda has grown to one of the premier insurance brokers in the United States, helping over two million Americans save on their insurance rates. Please visit https://www.insurancepanda.com for a free car insurance quote today.


Amber Caldwell
(949) 555-2861

SOURCE: Insurance Panda

View source version on accesswire.com: