This is due to the states unique liability coverage policy covering an auto accident victims medical bills for a lifetime. Its true Michigan has the highest car insurance in the entire US.
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The MCCA is a private nonprofit created by the Legislature to reimburse auto insurers for PIP benefits that exceed 555000 per claim.
Why is michigan car insurance so high. There are several reasons your car insurance is higher than youd like including having a poor driving record a history of claims and a poor credit history. One reason may be the adoption of no fault insurance. I rent an apartment and pay all my bills on time.
You can read some of the great Facebook comments here. In this video Im going to explain the main reasons why car insurance is so high in Michigan. However Im troubled that the Free Press presented only the standard insurance solution to high insurance charges.
In Michigan rates are incredibly high in some cities like Detroit. The main reason is the states unique no-fault car insurance system. Why are auto insurance rates so high in Michigan.
However there are a few other factors that you may have not known about that contribute to the states high insurance premium. Auto theft in Detroit largely explains why insurance is so expensive there. Medical benefits are a small portion of your auto insurance bill.
Although no fault was originally. Michigans insurance rates are 90 more expensive than the average insurance rate in the US. A lot of the states with the lowest premiums are more rural Gusner said.
Michigan law requires auto insurance to include unlimited personal injury protection PIP which covers unlimited medical expenses incurred in a crash. In an average that pushes the numbers up. Unfortunately these simplistic solutions will not solve the problem.
Thats because the real reason auto insurance is so high in some areas is theft fraud and uninsured motorists. Cut benefits ie fee schedules and optional coverages. Part of the reason why Michigans insurance is still so high is that some people those without adequate insurance are still not eligible to opt out of paying for PIP.
Currently Michigan drivers pay 192 per vehicle to the MCCA. Car insurance in Michigan is the highest in the nation. So why is that.
The Top 3 Reasons Why Car Insurance Is So Expensive In Michigan. Michigans unique no-fault car insurance system is what causes the high annual car insurance rates. Today I wanted to share a particularly insightful comment I received from one of our readers Nick Weatherhead who is an insurance agent.
No fault is actually PIP Personal Injury Protection which means it pays for injuries wages treatment surgery etc to the driver andor passengers in an auto accident regardless if. Other no-fault states place a limit on the amount of. I am a 21 year old female with no little credit but I have no bad credit.
Michigan law has unique requirements that further inflates the cost of auto insurance. Why is michigan car insurance so high. Probably the biggest reason says Insurance Quotes Laura Adams is that Michigan is a no-fault state.
Many people are just frustrated and want to know why their car insurance is so high and they want action taken to stop it now. Others who are eligible may not realize they can make the change or know how to do so. One of the reasons is due to no fault in MI.
Also if you drive a lot youre driving a car thats considered unsafe or you have children on your policy you might see increased rates. The part of no-fault that guarantees someone severely hurt will get the reasonable care they need is just a fraction of the cost and some would argue the best bargain in the nation. Consider just the following.
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