(MoneyWatch) Pity Michigan drivers. Whether driving a 1967 Pontiac or a brand-new Porsche, car owners in the state pay a higher percentage of their income for auto insurance than any other drivers in the nation.
The reason? Michigan law requires that every auto insurance policy provides unlimited personal injury protection, says John Egan of CarInsuranceQuotes.com. So if you get in an accident and are injured, the auto insurer may have to pay for your physical therapy for the rest of your life. As a result, the average Michigan driver spends 8 percent of his or her income on auto insurance each year.
On the other end of the spectrum, residents of Massachusetts devote the smallest chunk of their income to buying car insurance, although Egan notes that’s largely because median income is higher there. North Carolina residents pay the second-smallest percentage of income for auto insurance, with the state far more