Will your car insurance cost more in Grand Rapids?

Flag of City of Grand Rapids
Flag of City of Grand Rapids (Photo credit: Wikipedia)
No matter where you live someone is always telling horror stories about the things that either cost too much or are remarkably inexpensive about where they live. This can range from property taxes, to gas to bread (REALLY expensive in Hawaii). But one thing that really seems to get people fired up is when it comes time to talk about the cost of car insurance. Unless you’ve just switched to a new company and seen a big savings, chances are you think you’re paying too much. In Michigan, this has been a complaint for years. Grand Rapids, the state’s second biggest city, this has been an increasing complaint as the city continues to grow and prosper.

So is it true, do people in Grand Rapids actually pay more than the rest of Michigan? Or the rest of the country for that matter?

No Fault’s Fault

With Michigan drivers required to carry no-fault insurance, there is some truth to the high price gripes. This requirement provides unlimited lifetime medical care for auto related injuries. Michigan is the only state that requires this, and thus the burden falls on all auto owners, artificially upping rates for Michigan drivers. Adding up the numbers from a report by carinsurancequotes.com shows that Michigan residents pay the largest amount of their annual income for car insurance, with 8 percent of the annual median household income going to pay for car insurance. OUCH! By comparison, the residents of Massachusetts pay only 1.4 percent of their household income. 

So while there isn’t any hard research on whether or not Grand Rapids (please point it out if you can find it…I haven’t been able to),  there may be some clues in typical geographic related cost issues. Such as:
  • Urban vs. Rural. More traffic, more accidents, more crime all come with urban environments compared to rural (usually). So, if you live in Grand Rapids you’re in the second largest urban area in the state of Michigan. So, if you’re in the second largest urban area in the state with the highest car insurance rates in the country, it’s safe to assume this will count against you.
  • Weather. Again, Grand Rapids being only a short jaunt away from Lake Michigan has another factor working against it. Getting pounded by heavy lake effect snow each year also causes more accidents and likely jacks up insurance rates.
So, while I don’t have hard evidence for you, when you combine in the factors of no fault insurance, the urban environment and the bad weather, car insurance in Grand Rapids is basically the “perfect storm” for high insurance rates, and likely does have some of the highest in Michigan.

Comments

Post a Comment

Popular posts from this blog

Do People Still Use Trash Compactors?

Image
Prior to the Industrial Revolution and into the 19th century there was very little trash in America. People found a way to reuse almost every scrap of waste. That changed when manufacturers began packaging goods to attract consumers. It wasn't long before “taking out the trash” became a chore no one was fond of doing. The invention of the trash compactor was a combination of several machines. One may say M.S. Wells started the trend in 1941 when he invented a machine used to crush oil cans. Two employees of the manufacturer Compackager designed machines more suitable for home and office use. Commercial trash compactors became an instant hit after their introduction. They are still frequently used by restaurants, hotels, medical facilities and other businesses that produce large amounts of waste. As with many appliances, the first compactors introduced for home use were considered a novelty. They were expensive and mostly available to the rich. They were bulky, noisy and s
Read more

Ways to Increase Your Property Value

Image
It's no secret that the real estate market is red hot right now. If you are looking to take advantage of the market and want to get the most for your house, consider these home improvements.   Curb Appeal Making a good first impression can go a long way when it comes to selling your home. If you are selling your home, consider updating your curb appeal. Replace any plants or scrubs that aren't looking their best. Swap out faded mulch or plant some flowers for a pop of color. These are quick and relatively inexpensive ways to draw a potential buyer in from the get-go. Energy-Efficient Improvements  There are numerous energy-efficient upgrades you can make for your home. Kitchens are known to be big selling points for homes so consider new energy efficient kitchen appliances. It might also be beneficial to think about a new  energy-efficient furnace  for colder climates or central air for warmer clients.  Paint, Paint, and Paint A new coat of paint does wonders to freshen up a ho
Read more

Selling Your Home the Right Way

Image
If you expect to sell a home in the near future, there are many things you can do before you put your home on the market to help get you the offers you want more quickly. From fixing up trouble spots to hiring a professional, you can get a better price by making your home more attractive to buyers. The first step to make your home more appealing is to make it look bigger and more attractive. Buyers are always in the "would I live here" mindset, and no one wants to live in a dirty, cluttered or old looking house. Unless it's a cool looking old house . The easiest way to make you home look bigger is to clean up the messes and general "stuff". Cleaner houses appear to be bigger for some reason. Also, having proper lighting always makes rooms appear larger, more attractive and more inviting. Apply a fresh coat of paint or get carpets professionally cleaned before an open house, so buyers can see the house in the best condition possible. Increase curb appeal
Read more