Seemingly every year the topic of reforming Michigan's unique no-fault automobile insurance system comes up. The approaches to reform are varied, but the primary cause for conversation has remained the same: some drivers around the state pay as much as $3,000-5,000 a year for their auto insurance.
"Just look at Ohio," some will say. "They only pay $900 on average."
According to the most recent report from the National Association of Insurance Commissioners (NAIC) published January 2017, the national average for auto insurance, regardless of what it covers or how it operates, is $982 per vehicle.
In the 38 states that operate on a tort system, your insurance will pay to repair your car, the damage you cause with it, and give you some protection in the case that you cause an accident, are sued, and owe another driver damages. In tort states you also have to wait for your lawsuit to resolve before you really can start therapy, unless you have enough savings to pay out of pocket.
In 12 other states there is some form of no-fault coverage, where drivers are able to file claims against their own insurance policy, but 11 of those states have caps on that coverage. New Jersey has the second highest coverage limit, with $250,000 in coverage, while Michigan leads the pack with no predetermined limit.