Michigan enjoys the dubious distinction of being named the most-expensive state in the United States for auto insurance for 2015. What most people outside the state may not understand is what this expensive insurance pays for in comparison to other ‘cheaper’ states. Michigan is a ‘no fault’ state and state minimum insurance requirements must include personal injury protection (PIP) for the driver at fault. However, finding the cheapest auto insurance in Grand Rapids, Michigan should still be attempted to keep rates low as possible.
The Michigan Difference
There are a number of no fault states in the United States, so why is Michigan the most expensive? There are three main reasons why Michigan insurance is highest in the nation. The first is that it is a no fault state. This means that insurance companies have to pay claims on accidents, no matter who is at fault. Although this results in less litigation, it means insurers pay out of pocket for most mild to moderate accidents with only severe cases getting resolved in court and seeking penalties from at fault driver.
Secondly, Michigan is the only state in the country that offers unlimited lifetime coverage for catastrophic injuries. If you were permanently disfigured, lost a limb or otherwise incapacitated that it affected your ability to make a living, you would get a lifetime payment from an insurance company in Michigan. Lastly, Michigan is in the top five highest averages of uninsured drivers in the nation.
However, just saying that Michigan is the most expensive does not relay the benefits of the system. First and foremost, the almost 80% of drivers that are insured in the state, enjoy better insurance protection than most other drivers in the country. Rehabilitation from injuries after an accident is covered under most policies in the state, wage losses are also covered and there is no burden on the state court system to resolve a vast majority of vehicle accidents. Yet, there is still a way to find the cheapest auto insurance in Grand Rapids, Michigan without paying exorbitant rates.
Getting the Right Coverage
The state’s minimum liability coverage is still rather low to protect you in the case of an accident where you are at fault; set at $20,000 for a single injury accident, $40,000 for a multiple injury accident and only $10,000 for property damage. As a driver in Michigan most of the negotiations for these types of coverages are done by insurance adjusters between insurance companies. Yet you need to ensure you have the right coverage because the PIP portion of the no fault insurance only covers personal injury and not property damages. This portion of your insurance should be double to triple or more of the minimum requirement.
The PIP portion of coverage comes in four different types in Michigan including coordinated with your medical insurance provider, lowering your auto insurance premiums. Coordinated with loss of income that provides a measure of protection against wage loss and coordinated with both medical and wage loss. Lastly there is full medical coverage where your auto insurance would cover all medical costs and is the most expensive.
The Cheapest Auto Insurance in Grand Rapids, Michigan
Grand Rapids is the second largest city in Michigan with a city population of only 188,000 but a metropolitan area of over 1 million residents.
Who is the Cheapest in Grand Rapids?
If you are looking for the cheapest auto insurance in Grand Rapids, you may want to do some research through online quoting tools. ValuePenguin provides an annual study of insurance premiums across all states and the largest cities in the state based on thousands of surveys of companies based on an average and typical driver. In Grand Rapids this study shows that Hastings Mutual at just $480 annually is the cheapest insurer in the state. Chubb, MEEMIC, Nationwide and Wolverine Mutual are the next four cheapest insurers with an annual premium range of $579 to $699. The city’s average insurance rate is $908, so all these companies are well under the city average.
Average Cheapest Insurer in Michigan
By far, Detroit has the highest rates in the state with an average of $2,396 and is partially the reason why the state’s average is so high. However the average in the state according to ValuePenguin is $1,399 which includes National General in the top five cheapest insurers that did not make the list for Grand Rapids. Other cheap insurers in the state of note include SECURA, the Farm Bureau, and Pioneer State Mutual. These companies also made the top five cheapest in at least one Michigan city and may be worth looking into. As well, Fremont Insurance, USAA, and Westfield Insurance were in the top five least complained-about companies in the study, if quality is important to you.
Grand Rapids may be located in the most expensive auto insurance state in the country, but that does not mean that you should not be conducting extensive research trying to find the cheapest option for you and your family.