Why is car insurance in Michigan so expensive?

Why is my insurance in Michigan so expensive? I just moved here from North Carolina and I can't believe the price difference.

Since North Carolina has cheap insurance rates, you probably have sticker shock, considering you just moved to a state with some of the highest rates in the country!
Michigan’s rates are much higher than most other states due to several factors:
  • High minimum limits
  • High PIP (personal injury protection) requirements
  • High state fees
  • Insurance fraud
The minimum liability insurance requirement in MI is $50,000/$100,000 whereas most states only require $25,000/$50,000. The PIP requirement is the highest in the country, with most people required to carry $250,000.
Since the cost of insurance is so high here, many people can’t afford it, which results in many uninsured drivers on the roads. Uninsured driving leads to frequent lawsuits and increases the insurance rate for the people who do buy their insurance.
This is a vicious cycle, but the best thing you can do is keep your insurance policy active and look for ways to save money.
Check with your insurance company to make sure you are getting all of the discounts that you are eligible for, such as:
  • Defensive driving discount
  • Telematics discount
  • Safety features discount
  • Low mileage discount
  • Alumni and professional organization discounts
It could also be that your insurance company (if it’s the same) charges more competitive rates in NC than in MI. Download the free Jerry app to compare dozens of competitive quotes and, if you find a better one, make an easy switch in-app.
Shannon Martin
Answered on Oct 21, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.

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