• Jul 30th 2012 at 11:00AM
  • 99
Drivers in Michigan pay 8 percent of their income to ca... Drivers in Michigan pay 8 percent of their income to car insurance (Credit: josephdepalma, Flickr).
The state that America's auto industry calls home is also the state that boasts the nation's highest car insurance rates.

A study recently released by CarInsuranceQuotes.com found that Michigan residents pay the highest rates in the U.S. compared to the average resident income. Eight percent of the average Michigander's income goes to pay car insurance, the study found.

Part of the reason for that status, ABC News says, is that Michigan is the only state that guarantees unlimited personal injury protection, no matter which driver is at fault.

"If you're an accident victim, that will pretty much save you from going bankrupt," said John Egan, the managing editor of CarInsuranceQuotes.com. "But opponents of the system say it jacks up the car insurance premiums for everybody."

Michigan's rates are nearly double that of the second-highest state.

"Michigan is very unique in our auto insurance system," says Lori Conarton, a spokeswoman for the nonprofit Insurance Institute of Michigan tells the website that authored the study. "It's really hard when people compare Michigan premiums to other states because (policyholders in other states) are not paying for the same benefits."

Following Michigan in the Top 5 most expensive states are: 2. Louisiana (5 percent); 3. Kentucky (4.548 percent); 4. West Virginia (4.239 percent); 5. Mississippi (4.045 percent).

The most affordable? Residents of Massachusetts are the big winners, paying only 1.43 percent of their annual income for car insurance. Rounding out the Top 5 most affordable are North Carolina (1.6 percent), Hawaii (1.6 percent), Alaska (1.75 percent) and Oregon (1.95 percent).

Don't see your state among the best or worst? Go here to find a state-by-state breakdown of the CarInsuranceQuotes.com study.


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  • 99 Comments
      • 3 Years Ago
      Poppycock. I just left Hawaii after living there for 16 years. I lived in Michigan for 21 years. Hawaii is MUCH more expensive for adults. Why? They cannot base their rates on age. SO, a 16 year old with a 2005 Nissan Frontier would pay EXACTLY the same as a 45 year old with a Nissan Frontier. Hawaii is higher,. Bad article.
      • 3 Years Ago
      Yeah, I live in Michigan. I knew right away that we were the lucky ones to get top spot! I know it every month when I pay my car insurance. Can't afford to pay it every six months or yearly. I'd have to take out a loan!
      sja8800
      • 3 Years Ago
      comparison based on % of income doesn't relate,,,,,it would be more interesting to convert those %'s into dollars !
      janka51
      • 3 Years Ago
      Don't bother gettign Geico , they want pay, then you get sued
      carol lowery
      • 3 Years Ago
      Florida isn't cheap either, my insurance just went up to $707 for 6 months of coverage and they have a lousy No-Fault coverage of only 10K which only pays 80% of the medical bills. You can get 25K in med pay cheaper. We have so many bad drivers down here along with a lot of unlicensed, uninsured drivers. At this rate, next year I'm going to buy myself a horse and buggy.
      Lancer8r
      • 3 Years Ago
      There is a lesson to be learned here, all you Obamacare supporters. When government makes the insurance companies pay for more, they charge more. Pretty basic, really.
      • 3 Years Ago
      yeah...very high insurance rates... I pay $131.00 a month for a car that is 8 years old... INSANE!!!!!
        HonknDodge
        • 3 Years Ago
        Your ins. rates are based on where you live, your driving record, and how old you might be. And of course the number of the claims the ins. company has to pay out for the area that you live in. Simple math.
        tokenfan
        • 3 Years Ago
        Unless you are carrying collision, comprehensive, etc. on what probably is a near worthless car, cancel that insurance and just carry liability.
      George
      • 3 Years Ago
      If you want even more understanding, try driving around Michigan....especially Detroit.
        carol lowery
        • 3 Years Ago
        @George
        Went thru Detroit a few times to visit a relative in that state, your right, they are terrible drivers especially on that expressway.
      kimallman
      • 3 Years Ago
      I heard the rates were so high because of the white deer in the wintertime up in the U.P. Can't see 'em on the roads, such a risk. At least that what I think maybe it was Allstate said ? I forget.
        dukecreek
        • 3 Years Ago
        @kimallman
        I don't know what you been smokin' but I would like to buy some. White Deer in Michigan??? I have lived here for nearly 70 years and I have never seen a white deer and I have hunted entensively for 55 of those 70 years.
        HonknDodge
        • 3 Years Ago
        @kimallman
        Auto insurance companies charge rates according as to how many claims are filed in a given area. If you live in an area that has a lot of claims against the insurance you're gonna pay more then if your area has just a few claims against the insurance company. Simple fewer claims means cheaper ins. premiums more claims means higher ins. premiums.
      • 3 Years Ago
      Don't worry ObamaCar will come to the rescue :P
      Koz
      • 3 Years Ago
      So a person in Michigan pays 8% a year, is this the average pay or specfic pay. At $50,000 I would pay $4000 but if I took a pay cut to $20,000 I would only pay $1600. Don't sound to good but I pay less in Mass. for two cars, less then the $1600; in fact add my bike and I still pay less.
      salliemeyer28
      • 3 Years Ago
      Age gap dating is gaining popularity and acceptance at an alarming rate. Many young women are looking to date older men, and many young guys appreciate the maturity of older women. If you are over 40 & single, I would encourage you to take a try on- - - - - Аgelеssmαtch_ C○m - - - - - -to date someone much younger, to feel young again, and to make your life more adventurous. Not a valid comparison unless you take into account each States per capita income. I'm sure Mass. has a higher per capita income than Michigan, so their ins. cost would be less as a %.
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