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Average Cost Of Auto Insurance In The Midwest

Bills. No one likes getting them, and certainly no one likes paying them. However, they are a necessary part of becoming an adult. Between your phone, utilities, rent or mortgage, health insurance and auto insurance – it seems everywhere you turn you’re getting hit up for money. Combine that with the increasing number of young people in debt from their schooling and it’s enough to make you want to throw your laptop across the room. But that would just result in another bill.

As a sensible and mature adult, you recognize that there are certain things in life that you really can’t afford to do without. Car insurance just so happens to be one of those things. The average cost of auto insurance according to the Department of Motor Vehicles just breaches the $900 threshold. If you happen to live in one of the 11 states acquired in the Louisiana Purchase, also known as the Midwest, you spend less on your annual car insurance premiums than the rest of the country. Except for you, Michigan, you come in at a hot $1,131.40.

At CoverHound, we help you find coverage that isn’t just affordable, but also worth your while.

The Midwest Advantage

As mentioned earlier, there are 11 states that make up the Midwest. Alphabetized, these include: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin. When put altogether, the average cost of auto insurance for Midwesterners is $699. That’s $200 less than the national average! Let’s break down the annual average cost by state:

Thanks to the Insurance Information Institute, (III) we get a clear and precise measurement of what each state pays. Why are the numbers different, and why is Michigan’s significantly higher than the others? It boils down to two important factors: state law and driving record.

A Quick Comparison

To get a better understanding of why the average cost of auto insurance varies, let’s compare the Midwest’s most and least expensive states: Michigan and Indiana.

By state law, Michigan mandates their motorists carry no-fault car insurance. No-fault car insurance covers drivers involved in an accident no matter who is at fault. Michigan’s no-fault car insurance includes property protection, personal injury protection (PIP) and residual bodily injury/property damage (BI/PD) liability insurance. The minimum amounts to carry for BI/PD coverage is $20,000 for injuries or death to a person, $40,000 for injuries or death per accident to multiple people and $10,000 for property damage in another state. In the insurance world, this is listed as 20/40/10.

Indiana on the other hand requires its drivers carry liability coverage with a policy that includes uninsured/underinsured motorist coverage. The minimum amount of coverage to hold for bodily injury is $25,000 per person, $50,000 per accident and multiple people injured, and $10,000 for property damage, 25/50/10.

In 2014, Michigan had a total of 298,699 accidents, while Indiana had 188,841 traffic collisions in 2012. So while Michigan requires less minimum insurance coverage, their no-fault nature and higher annual total of accidents make its average cost of auto insurance more expensive. Insurance agencies don’t make subjective decisions; every quote is entirely based on statistics.

The average cost of auto insurance depends on a variety of factors: where you live, the make, model and year of your car, even your age plays a role. At CoverHound, we help you find the best coverage plan for you, regardless of your state’s laws. Take a look at our online insurance portal today to find the right auto coverage for you!

Insurance shopping simplified

Review personalized quotes, select coverages, and buy online - Everything insurance, all-in-one-place.

Insurance shopping simplified

Review personalized quotes, select coverages, and buy online - Everything insurance, all-in-one-place.

Insurance shopping simplified

Review personalized quotes, select coverages, and buy online - Everything insurance, all-in-one-place.
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