It's been a long 7-years, but we have finally become #2! What? So that's a good thing? Yes, when it comes to the cost of Auto Insurance.

Michigan is no longer the most expensive state to buy car insurance, according to a report released this week by After seven years of having the dubious distinction of being number one for all the wrong reasons, the state dropped to number two following reforms to Michigan’s broken, outdated auto no-fault system.


According to the report, Louisiana has the most expensive, with average premiums costing $2,839 per year. We, Michigan, are in second place with $2,112 per year. That's a rate drop of 27%!

“This report from adds to the mounting evidence that no-fault reforms are working and saving Michigan drivers money,” said Erin McDonough, executive director of the Insurance Alliance of Michigan. “There are still plenty of Michiganders who haven’t renewed their auto insurance since the new law took effect, which means Michigan’s rates could be even lower by this time next year.”

“Michigan uses a very unique no-fault system that has resulted in sky-high rates for years. Recent changes to their system are responsible for their drop to second place this year,” the report states.

This report follows an announcement by the Insurance Alliance of Michigan that more than 25 auto insurance companies plan on entering the market this year because of changes to the no-fault law — specifically, a medical fee schedule, which takes effect in July to rein in overcharging by medical providers.

Lower rates drivers are seeing now are due to anticipated savings from the medical fee schedule. The Michigan Catastrophic Claims Association (MCCA), which reduced its yearly per-vehicle fee by 60% over the last two years, also based its reduction on the upcoming fee schedule.

Lower rates and more competition from new companies. That means big savings for drivers in Michigan.....finally!


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