Top of the list — for car insurance prices

Record-Eagle, The (Traverse City, MI)

Feb. 27-- Feb. 27--TRAVERSE CITY -- Michigan has maintained, for another year, its position atop a list motorists wish it wouldn't.

Insure.com said in its 2018 report that Michigan is the most expensive state for car insurance for the fifth consecutive year. The average car insurance premium last year in Michigan was $2,239, according to the website.

Car insurance rates by state

According to TheZebra

Most expensive Least expensive

1. Michigan $2,610 1. North Carolina $865

2. Louisiana $2,225 2. Virginia $901

3. Kentucky $2,050 3. Maine $927

4. Rhode Island $2,004 4. Iowa $1,015

5. Florida $1,878 5. Idaho $1,018

National average: $1,427

Source: TheZebra.com

According to Insure.com

Most expensive Least expensive

1. Michigan $2,239 1. Vermont $932

2. Louisiana $2,126 2. Ohio $944

3. Florida $2,050 3. Idaho $989

4. Rhode Island $1,852 4. Virginia $1,013

5. Connecticut $1,831 5. Iowa $1,025

National average: $1,365

Source: Insure.com

That average automobile premium actually was $155 lower than in 2017. But it is still $874 more expensive than the 2018 national average of $1,365.

Linda Fisher, president and owner of the Cardinal Insurance Group in Traverse City, said there are two big reasons why Michigan motorists pay very big premiums.

First, Michigan has what Insure.com called "a unique no-fault car insurance system" with unlimited personal injury protection.

"Michigan is the only state in the country where you can get hurt in an accident, we pay all of your medical expenses forever: No limit, no cap," Fisher said.

Second, the state has no schedule of mandated fees, the maximum amount an institution can charge for a service -- so costs keep adding up, Fisher said.

Fisher, in her 31st year in the insurance industry, used as an example the 2016 figures for the cost of an MRI test. The maximum charge for an MRI under Medicare was $484, she said, $766 under a Worker's Compensation claim. The average billed cost of an MRI for Michigan's no-fault insurance claim was $3,279.

"There is no limit to what they can charge," Fisher said, under the umbrella of car insurance.

Another website, TheZebra.com, also puts Michigan atop the list of the most expensive car insurance rates, while the site's methodology and figures may differ. TheZebra.com in its 2019 list said Michigan's average car insurance premium was $2,610. The site listed the national average at $1,427.

TheZebra.com listed Louisiana ($2,225) and Kentucky ($2,050) as the second and third most-expensive states. North Carolina ($865) topped Virginia ($901) and Maine ($927) as least expensive.

Insure.com ranked Louisiana ($2,126) and Florida ($2,050) behind Michigan ($2,239) as the three most expensive. Vermont ($932) was Insure.com's least expensive, with Ohio ($944) and Idaho ($989) close behind.

Fisher said the best way to lower car insurance rates in the state is legislation. But she said those efforts, despite being a part of several recent state political campaigns, so far have failed to produce results.

So what's a Michigan motorist to do?

"You do the usual things," Fisher said, putting an emphasis on shopping around and not just picking an insurance company because it's a family tradition, for example.

Fisher said having auto and home insurance with the same company is an easy way to save money.

She said moving to a higher deductible with an older car, and finding out if your health insurance at work will serve as the primary medical payer, are other ways to trim those costly bills.

Some companies offer discounts based on safe driving, which can be tracked via technology.

Drivewise from Allstate, Snapshot from Progressive and Drive Safe and Save from State Farm each use cellphones, OnStar, Sync or other technologies to gather data about how you drive. The programs reward safe driving with variable discounts.

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Visit The Record-Eagle (Traverse City, Mich.) at record-eagle.com

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