Michigan Most Expensive For Car Insurance

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<ul><li><p>Michigan Most Expensive For Car Insurance</p><p>The number of injury claims also factors into the equation. For instance, Louisiana-where a typicalhousehold shells out 5.5 percent of its annual income for car insurance-has a fairly large number ofinjury claims. "This has an effect on everybody's rates no matter what state you live in, and that'sone of the things people really need to keep in mind," said Egan.</p><p>Tomorrow, come back to ABCNews.com for five ways to cut your auto insurance rates.</p><p>When it comes to car insurance rates, Michigan, Louisiana, Kentucky, West Virginia and Mississippiare at the top of the heap for the amount paid compared to residents' incomes.</p><p>Whether this is good or bad depends on one's perspective. "If you're an accident victim, that willpretty much save you from going bankrupt," he said. "But opponents of the system say it jacks up thecar insurance premiums for everybody. So you've got two sides of the issue there."</p><p>"We wanted to warn consumers about how much car insurance costs as a percentage of their incomein the state," said John Egan, the managing editor of CarInsuranceQuotes.com. "It also serves as areminder that people really need to pay attention to how much they're paying and be their own bestfriend when it comes to getting the best deal they can get."</p><p>For a comprehensive breakdown of the car insurance costs in all 50 states plus the District ofColumbia, go to www.carinsurancequotes.com/car_insurance-costs. You can also enter your zipcode and compare quotes at www.CarInsuranceQuotes.com.</p><p>ABCNews</p><p>Jul 30, 2012 6:55am</p></li><li><p>According to data compiledby CarInsuranceQuotes.com, those are thefive most expensive states for car insurance,with Michigan in the number one position. Onaverage, the typical Michigan household pays ahefty 8 percent of its annual income for carinsurance. By contrast, the typicalMassachusetts household dedicates a mere1.43 percent of its annual income to carinsurance. North Carolina (1.6 percent),Hawaii (1.6 percent), Alaska (1.75 percent)and Oregon (1.95 percent) are among the mostaffordable states.</p><p>Most states require drivers to have some degree of car insurance, which is regulated at the statelevel. Part of the reason Michigan is so expensive is because it's the only state that guaranteesunlimited personal injury protection, or PIP. That covers the policyholders' medical costs in case ofan accident, no matter who's at fault, said Egan. Michigan is also the only state where coverageincludes unlimited lifetime medical and rehabilitation benefits.</p><p>Population size also has an impact on rates. Alaska and Hawaii, for example, have fewer accidentsbecause they simply have fewer people on the road. Consequently, "There are fewer opportunities tohave incidents that result in car accident claims," said Egan.</p><p>"So, if you're injured and paralyzed and need physical therapy or medical equipment for the rest ofyour life, that all gets covered by your car insurance policy," said Egan.</p><p>SHOWS: Good Morning America</p></li></ul>