Auto Insurance Numbers

According to the National Association of Insurance Commissioners, Michigan is the 10th most expensive state in the country for auto insurance. The average amount that an insured in Michigan pays for auto insurance is $980.32 per vehicle. Iowa is the cheapest in the country at $579.95. These numbers are based on liability, collision and comprehensive insurance for all insureds.

Across the country, the average for auto insurance is $838 per vehicle in 2004. Over the past three years they have seen a small increase in that with 2007 expected to be around $847 per vehicle. Detroit is the most expensive city to live in if you have a car, as they are running at $5,894 per vehicle per year for their auto insurance premiums. Roanoke, Virginia is the lowest at $912 per auto per year.

Only nine states in the country use no-fault insurance, which means that claimants do not have to prove who is at fault before they can recover damages from an auto accident. In 2004, 77% of all insured drivers had comprehensive and liability coverage, with 72% also having collision. In 2005, they found that from every $100 in car insurance premiums that are paid across the country, that $68 was for claims, with an average of almost $4,000 per claim.

Claim frequency has been increasing over the years as well. They had seen a decrease in claims of 17.8% for bodily injury and 11.5% for property damage claims from 1996 to 2005, but then in 2005 the trend reversed itself and they saw those same numbers increase 16.9% and 27.4% with the advent of higher medical and legal costs.

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