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Report shows Michigan drivers pay the highest car insurance premiums

If you live and drive in Michigan you’re no stranger to high auto insurance premiums. Now, a new report said Michigan has the highest auto insurance rates in the country.  The average annual premium of $2,500 is nearly twice the national average.

The report from The ZEBRA, which tracks auto insurance rates across the country, said drivers in Detroit have the highest premiums in the nation, paying on average more than $5,000 annually.

Lori Conarton is the communications director for the Insurance Alliance of Michigan. She said the state legislature has recently proposed changes that would address a number of issues.

“The auto insurance system here in Michigan is broken. It’s outdated. It was put in place more than forty years ago and it hasn’t been updated”.

Conarton said the system in Michigan is one of a kind, and there’s more than one issue that needs to be resolved.

“Because of this sort of unique system that we have, we don’t have a significant number of auto insurance banging the door to come to Michigan. That’s unfortunate because competition is good and we would welcome that”.

Conarton said Michigan legislators have made proposals to help lower rates. The plans have focused on eliminating Michigan’s unlimited lifetime medical coverage.

Supporters said the move would give people a choice in how much coverage to buy.