Mich. Among Least Affordable States for Insurance

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April 9, 2019—Michigan ranks as the third-least-affordable state in the country for auto insurance, according to a new study from the Insurance Research Council (IRC). Michigan’s affordability index was 2.21 percent from 2013 through 2016, compared with 1.58 percent countrywide.

The report, Auto Insurance Affordability: Cost Drivers in Michigan, combines information from IRC closed-claim research and other sources and is part of IRC’s ongoing research into the factors driving the affordability of auto insurance.

Key drivers of the state’s high auto insurance costs include the high cost of personal injury protection (PIP) claims, the rapidly increasing frequency of bodily injury (BI) liability claims, and the increasing litigiousness of the system.

Another major cost driver in Michigan’s auto insurance system has been growing attorney involvement and litigation. Attorney involvement in auto injury claims is strongly associated with higher medical expenses and higher ultimate claim costs, even when controlling for the seriousness of the injury.


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