Why is car insurance so expensive in Michigan compared to the rest of the country?

Before I moved to Michigan, I was warned about the high car insurance costs, but this still didn't prepare me for how much I have to pay! Why are costs for high here?

Answer provided by
Carol Chung
Answered on Apr 12, 2021
There are several reasons why car insurance is so pricey in Michigan.
First, Michigan has high minimum insurance limits, which results in higher prices. Because of the expense of carrying coverage, more drivers choose to drive uninsured, which also forces insurers to raise prices to account for the added risk on the roads.
It doesn’t help that the state is plagued by fake insurance claims and excessive lawsuits.
Furthermore, all drivers must pay the Michigan Catastrophic Claims Association (MCCA) fee to cover medical treatment for car crash victims. This fee can cost up to $170 annually for each vehicle.

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