Unlimited personal injury protection drives up auto insurance premiums in Detroit: Online quote service

Drivers in Detroit pay 165% more than the United States average in insurance premiums, due in part to the state of Michigan’s unlimited personal injury protection, says Bankrate Inc.’s insuranceQuotes.com service.

Last month, Quadrant Information Service conducted a study — commissioned by insuranceQuotes.com, on the average cost of auto insurance premiums in the 25 largest metro areas in the United States.

“One of the main reasons why car insurance is so expensive in the Detroit area is because Michigan is the only state where car insurance includes unlimited personal injury protection,” stated Laura Adams, senior analyst for insuranceQuotes.com, in a Sept. 11 press release. “Also, Detroit has a very high percentage of uninsured motorists – as high as 50% by some estimates. That unfortunately raises rates for those who do have car insurance.”

Policyholders in the New York-Newark metro area pay 36% more than the national average, while those in Los Angeles-Long Beach pay 25% more.

In the Charlotte, N.C. metro area, premiums are 43% below average, the company reported.