In October, an estimated 2 million Michigan drivers can expect to pay $40 more per vehicle for their auto insurance.  Auto insurers blame the rate increase on the removal of an $80 million tax credit from the state's 2016-2017 budget.

The rate increase only affects customers of Michigan based auto insurers, such as Auto Owners, AAA or Frankenmuth Insurance.   Michigan based insurers provide service to one third of Michigan drivers.

Premiums have increased every year since 2009 and will likely continue to increase each year largely due to the fact that it's mandatory for insured drivers in Michigan to have unlimited personal injury protection.

This means if an insured driver gets in an accident, their insurance company will pay all their medical bills related to that accident for the rest of their life if necessary, where most states have offer limited PIP or make the coverage optional.  The Lansing State Journal has more information.