Can You Guess Who Has the Most Expensive Car Insurance?

While Michigan may have been the state that made the American auto industry famous around the world, it has now earned another type of distinction that isn't all that positive. According to the most recent studies, drivers in Michigan can expect to pay the highest percentage of their income towards car insurance.

According to Car Insurance Quotes, a company that helps drivers find auto insurance policies that fit their needs and budgets by comparing quotes from different insurers, the median annual price for a car insurance policy in Michigan has reached $4,490. This represents close to 8 percent of the average annual income for a resident of the state.

There are many factors that have an impact on auto insurance prices in different states. While most states make auto insurance mandatory and require that drivers hold a policy which provides a certain minimum amount of liability coverage, some states have additional requirements.

This is the case for Michigan, which requires that every driver carry personal injury coverage, in addition to standard third-party liability insurance. Michigan is the only state in which residents are guaranteed unlimited medical treatment benefits for life in the event of an auto accident, regardless of which party is at fault. As one might guess, these factors have significantly contributed to Michigan becoming the state with the most expensive auto insurance rates in the nation.

While state regulations on auto insurance do have a large impact on the premiums drivers can expect to pay, there are many other reasons why the median annual price for a car insurance policy varies so much from one state to the next. In general, states that are less densely populated will benefit from lower insurance rates, as there are less cars on the road and thus a smaller chance of getting into an accident.

The number of claims and their average value plays a big part too. According to industry experts, Louisiana is one of the states with the highest numbers of personal injury claims related to auto accidents. This causes insurance rates to go up for everybody and explains why the state is the second most expensive to insure a vehicle in. The median annual price for auto insurance there is $2,912, which means that a resident must spend close to 5.5 percent of their annual income to insure their car.

The dense population and high possibility of a car accident occurring is why Michigan has the most expensive car insurance. If you are ever involved in a car accident in Michigan, make sure that you have adequate legal representation. The experienced car accident attorneys at Michigan Legal Center can help you seek maximum compensation for your damages. Contact us today for a free case evaluation.