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Don’t blame No Fault for uninsured drivers in Michigan

February 18, 2015 by Steven M. Gursten

WalletHub study shows high uninsured driver rates are not exclusive to No Fault states – and can occur despite lower-than- average car insurance costs

Michigan has a problem with a staggering number of uninsured drivers on our roads. I’ve described it in the past as playing Russian Roulette whenever we get behind the wheel to go somewhere, with a one-in-five chance of being hit by a driver with no car insurance.

But don’t put the blame for Michigan’s high “uninsured” driver rate on our No Fault auto insurance system.

The results of a study by the consumer website WalletHub shows there is no connection between the two, even though it’s frequently touted by the auto insurance industry and  so-called “reformers” (politicians who make gobs of campaign money from the insurance industry comes to mind), all angling to take away important legal protections of our No Fault laws to make it even more profitable for car insurance companies.

Here’s the point: The WalletHub study shows that high “uninsured” driver rates are not exclusive to states with No Fault systems. Nor are high “uninsured” driver rates exclusive to states with high auto insurance prices.

To the contrary, the WalletHub study proves that high “uninsured” driver rates can happen despite below- average auto insurance prices.

In its “2015’s Most and Least Risky States for Drivers’ Wallets,” WalletHub reported:

The “estimated percent of uninsured drivers” in Michigan was 21%.

Using the WalletHub study’s “uninsured” drivers data for other states and comparing those states to Michigan, we learn the following:

  • Only one of the states with a higher “uninsured” driver rate than Michigan is a No Fault state.
  • Three of the states with higher “uninsured” driver rates than Michigan have auto insurance prices that are both considerably lower than Michigan’s and below the national average for the price of automobile insurance.

Below is a chart with the data used for the comparison:

Uninsured drivers, Wallethub

The “countrywide” average auto insurance premium is $911.56, according to the Insurance Institute of Michigan and the National Association of Insurance Commissioners.

Sources: WalletHub (“2015’s Most and Least Risky States for Drivers’ Wallets”); Insurance Institute of Michigan (IIM); National Association of Insurance Commissioners (NAIC); and Insurance Information Institute (III).

Related information:

How can we fix Detroit’s sky high insurance rates?

Michigan drivers paying up to 26% more than they should for car insurance

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