Auto insurance rates expected to rise in Michigan this year

(WXYZ) – Michigan drivers are gearing up to prepare as auto insurance rates are expected to rise this year across the state.

According to experts, many insurers are increasing premiums by double digits. They say the rate hike is the result of inflation as companies try to offset higher costs.

Fellow Detroiters Mark Morgan and Capri Murrell aren’t related, but they do have one thing in common: They pay between $200 and $250 a month for car insurance.

They are like other car owners who feel the heat.

“In other states, I’ve heard they’re only $35 a month. I think that’s very affordable for something you demand from people,” Murrell said.

Despite the reforms, Michigan drivers still pay some of the highest rates in the country.

Source: The Zebra

The 2022 Zebra State of Auto Insurance study shows that Louisiana and Michigan are the only states with an average premium over $2,500.

Additionally, in the top 10 most expensive cities for car insurance, Detroit took the lead, followed by River Rouge and Dearborn ranked 9th and 10th, respectively.

Source: The Zebra

Experian’s Rod Griffin says it’s all down to inflation and supply chain scarcity.

“Cars cost more, and therefore insurance rates reflect that as well. Auto parts cost more to buy, replace and repair, which also drives up insurance rates,” Griffin said.

Insurance expert Ken Cantor says drivers can expect to shell out 6-15% more on premiums this year.

“They use a lot of different online sources when they’re scoring scans to assess risk, and one of those things is crime score and past casualties and things of that nature,” Cantor said.

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Compared to other states, credit scores and marital status do not directly affect rates in Michigan, but your driving record, payment history and age do play a part.

“Older drivers are rated higher,” Cantor said.

He says Michigan’s 2020 policy change was also misleading. The public has been told that unlimited injury protection is causing expensive premiums. However, in reality, this did not have much impact on rates, but left people in a sticky situation.

“They are lowering certain limits on medical care under PIP and at the same time when those limits are exhausted here, they have to go to their insurer,” he said.

To make matters worse, many people don’t pay for their auto insurance because they simply can’t afford it.

“They’re driving without cover,” Cantor said.

Source: The Zebra

Driving without insurance is not only against the law, but extremely dangerous as any type of accident would result in a heavy financial burden. So what can you do besides shop?

“Ride safely, don’t have accidents and don’t get tickets, it’s that simple,” Cantor said.

Cantor also recommends using an insurance broker, because if things go wrong, you’ll have someone to back you up.

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