According to the Zebra’s annual State of Auto Insurance Report released today, Michigan is listed as the country’s most expensive state for auto coverage, while Detroit is the country’s most expensive city.
Nationally, car insurance premiums are up 20 percent since 2011, according to the report, which studies insurance pricing trends over time. The report also examined how the insurance industry is evolving.
As it stands, Michigan is the only state that mandates insurance companies to provide unlimited, lifetime medical benefits to motorists injured in auto accidents.
“Insurance companies leverage thousands of data points to determine car insurance rates – things like your age, driving record, and even your credit score,” says Adam Lyons, founder and executive chairman at The Zebra. “Today, we’re also seeing extraordinary forces like overnight tech innovation and devastating natural disasters impacting rates. Our independent research seeks to uncover the trends and forces behind these rate hikes and to help the 250 million drivers in the U.S. make informed insurance decisions about their own coverage.”
The annual report examines more than 52 million auto insurance rates across the U.S. The study found a national average annual premium of $1,427. Michigan is listed as the most expensive state for car insurance, followed by Louisiana and Kentucky. Detroit tops out the list of the most expensive cities, with New Orleans and Hialeah, Florida in second and third place, respectively.
The rate changes since 2011 are not consistent across the country, according to the report. Some states saw increases of one percent while others saw increases of more than 60 percent. Ten states saw a net rate decrease, some by up to 20 percent. Rate changes year by year were as high as 9 percent nationally and up to 45 percent in some states.
Some insurance companies are penalizing distracted driving for the first time, though not as harshly as other traffic violations such as drunk driving. Consumers are seeing very few discounts for having safety and anti-theft technology features.
The report also includes the most and least expensive vehicle makes and models to insure, how personal characteristics such as age, gender, credit, occupation, and marital status affect insurance rates, how much traffic tickets for various violations would raise insurance rates based on location, and tips for saving on car insurance.
The Zebra is an auto insurance search engine that offers a real-time quote comparison tool for more than 200 car insurance companies.
See the 2018 State of Auto Insurance Report here.