We all know that we should not speed, drive recklessly or drive drunk. Did you know that Michigan drivers who get caught performing one of these traffic offenses will see their auto insurance rates rise higher than almost all other states.

The Detroit News is reporting that Michigan "ranks in the top five among states for auto insurance rate increases for drivers who are convicted of traffic offenses like speeding, reckless driving and drunken driving, according to a new study conducted by insuranceQuotes.com."

Some examples the Detroit News gives from insuranceQuotes’ third annual Moving Violations report shows Michigan drivers:

  • found guilty of speeding by more than 31 mph above posted limits see their auto insurance rate increase an average of 49.73%
  • convicted of reckless driving see their auto insurance rate increase an average of 116.43%
  • convicted with driving while intoxicated see their auto insurance rate increase an average of 119.58 %

Most, if not all, experts say the reason Michigan has not only one of the highest auto insurance rates in the country but also some of the highest increases after a traffic offense is due to our "no-fault" auto insurance. Michigan is one of 12 states that has some form of no-fault auto insurance.

Our no-fault auto insurance means that we must carry liability coverage for accidents in which the other driver is blamed for, most other states has at-fault auto insurance. When you have the option of at-fault insurance, your insurance only covers repairs to the other vehicle when you are "at-fault". Under "at-fault" auto insurance you must pay for the repairs to your car if you are at-fault.

Another reason for the high auto insurance rates and increases is of course Michigan is the only state to have unlimited medical coverage.

I do not understand why the State of Michigan will not allow us the option of purchasing "at-fault" auto insurance. If we the people want to take on the risk of paying for repairs to our own automobiles, why is that the states concern.

I do not know how much that would reduce our rates as State law requires we purchase unlimited medical liability insurance. Some experts say 75% of our premiums goes to cover medical expenses.

Let’s talk about this tomorrow (Monday) on The Live with Renk Show which airs Monday through Friday 9 a.m. to noon. Let me know your thoughts during the show, please call (269) 441-9595.

Or please feel free to start a discussion and write your thoughts in the comment section.