Michigan Auto Insurance Stats

In 2004, the average annual out of pocket premiums for auto insurance in Michigan was $980.32 per vehicle, making Michigan the 10th most expensive of all states for auto-insurance costs. (Iowa Auto Insurance was cheapest at $579.95.)

Nationwide, the average annual expenditure for auto insurance was $838 per vehicle in 2004. For 2007 it's expected to to an average of $847.

Of the 100 cities surveyed in 2006, Detroit was the most expensive for average annual auto premiums, at $5,894 per vehicle. (Roanoke, Va., was least expensive at $912.) Auto insurance tends to be more expensive in larger cities because of traffic density, likelihood of theft and vandalism, and fraud.

Michigan is one of only nine states that use no-fault insurance, meaning claimants need not prove that others were at fault before recovering damages for an accident.

• 77 percent of insured drivers were covered by both comprehensive coverage and liability coverage and 72 percent had collision coverage.

• $68 of every $100 in premiums for private-passenger-auto insurance was paid out for claims.

• In 2005, claims covered by collision insurance and involving passenger vehicles amounted to an average of $3,937 per claim.
  

• Between 1996 and 2005, claim frequency fell 17.8 percent for bodily-injury claims and 11.5 percent for property-damage claims. But claim severity rose 16.9 percent and 27.4 percent, respectively.