Michigan continues to lead the nation with the highest auto insurance rates in the nation, and Detroit is by far the most expensive city for car insurance, according to a new study by insurance comparison site, The Zebra
The average annual rate for car insurance in Michigan in 2019 was $3,096, a 7.3% increase over 2018 and a 39.5% increase over 2011. Louisiana ranked second highest at $2,379 a year.
Michigan’s rates were more than three times higher than the average in Maine and North Carolina, the states with the lowest rates in the nation, at about $950 a year.
In Detroit, the nation’s most impoverished big city, auto insurance averaged a whopping $6,208 a year. No city came close to matching Detroit. The city with the second highest rates — New Orleans — was $3,735.
The lowest rates in the nation were in four North Carolina cities — Winston-Salem, Greensboro, Durham, and Raleigh, ranging from $847 to $952.
Michigan drivers should see some relief on their auto insurance bills in July, when a revamped no-fault system
goes into effect.
A University of Michigan study
last year found that Detroiters on average spend 18% of their income on auto insurance. In some Detroit ZIP codes, auto insurance soaks up 36% of drivers’ income. Anything beyond 2% is “unaffordable,” according to the U.S. Treasury Department’s Federal Insurance Officers.
That helps explain why an estimated 60% of Detroiters drive without insurance.
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