Michigan’s no-fault auto insurance system is broken. As a result, consumers pay among the highest rates in the nation, and rates have been rising faster in Michigan than in any other state, according to the Insurance Information Institute.
The primary driver of the high cost of insurance in Michigan is the state’s no-fault system, which is different than every other state. Michigan’s system offers unlimited benefits with no cost controls, which has led to escalating insurance rates. As the Rand Institute noted, “In 2007, average total auto insurance premiums in Mic