Michigan Auto Insurance Rates Are Going Up This Year

By: Alyssa Fenske Email
By: Alyssa Fenske Email

LANSING (WILX)-- It's the latest increase from the "Michigan Catastrophic Claims Association," which pays for lifetime medical care for people seriously hurt in accidents.

The increase has critics pushing for a change to Michigan's "no-fault" insurance law.

Unlimited medical insurance would be good to have in a major accident, but the benefits come with a cost.

Michigan is the one of the most expensive states when it comes to No-Fault insurance. The average No-Fault claim has increased by 324% in the past 12 years. It increased to $44,138 in 2012. The next state is New Jersey, that averages at $17,570 per claim.

"Michigan premiums are above other states surrounding us. Also the average claims are higher and that reflects on what people pay here," said Insurance Institute of Michigan employee Lori Conarton.

Increasing health care means the MCCA will increase their assessments to $186 dollars per insured vehicle. That's a 6 % increase from the $175 per vehicle cost in 2012.

"You pay a MCCA fee but you also pay for PIP the medical under your regular policy as well. So those two combined are increasing," said Conarton.

Critics says other factors have driven up the cost as well.

"When you have unlimited medical coverage you have abuses, and abuses drive up the cost," said Senator Rick Jones (R).

Having to pay $11 more dollars may not sound like much, but it could be the determining factor that makes auto insurance unaffordable for the average family.

"What we find with the increased premium is that there's more people driving on the road uninsured," said Conarton.

Law makers believe putting a cap on unlimited medical coverage might be the answer to lowering premiums.

"Part of the problem is that we are the only state that has unlimited medical coverage. I'm in favor of allowing the citizens allowing to choose their coverage," said Jones.

"If we lowered it to one million it would still be 20X higher than the next state," said Conarton.

The MCCA and its supporters believe people with lesser insurance policies may not have enough coverage if they are in a serious accident.

It's unlikely any insurance law changes will be passed before the new rate kicks-in July 1st.

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  • by Hugh Location: Detroit on Apr 3, 2013 at 11:00 AM
    Keep voting for Obama!
  • by Heywood Location: Location on Apr 2, 2013 at 10:37 AM
    David, that's a grand idea except for the fact that comp and collison are the CHEAP parts of your policy! It used to be that PL/PD etc. was cheap and you paid through the nose for collision. (still that way in many states) But Michigan bangs it to ya as soon as you walk in the door!
  • by perry Location: st clair shores on Apr 2, 2013 at 06:50 AM
    Just got nmy renewal from AAA, april 1, for the upcoming year starting in May 1, the price when up 850 dollars from 1922 to 2772. Can't afford to drive in this state anymore. GOVEROR SYNDER should fix rip of the consummers as more and more drivers willnot carry insurance. Been with AAA forever and only 1 claim, 4 years ago when hit in driver side by another driver who lost control of auto. No tickets what so ever. RIPOFF.
  • by David on Apr 2, 2013 at 04:50 AM
    Just another reason to leave this state! It's an expensive place to live. We also get hit with high gas price spikes, moreso than neighboring states. Might have to drop full coverage and go down to plpd.
  • by Lisa Kay Location: Lansing on Mar 30, 2013 at 07:01 PM
    The MCAA should be eliminated. I am paying more in insurance now than I did when my car was new. Further if we are all required to have health insurance thanks to bama, then MCAA is pointless. I should not be forced to purchase this. I am tired of paying for everyone else benefits and getting none myself.
  • by Jim Location: Here on Mar 30, 2013 at 05:12 AM
    It's not the $11 per year that will be the determining factor in whether or not people will be able to afford auto insurance... that is less than $1 per month. These same people spend $6.31 per pack of cigarettes and that doesn't stop them. At a pack a day, thats $195 per month. It's amazing how many people on welfare smoke. The truth is, that the honest hard working people among us pay $900 plus for annual insurance coverage so that the 1-800-Call-SAM and 1-800-LEE-FREE can make out like fat rats in January on exaggerated insurance claims while so many drivers out there pay just $100 or so to get enough coverage to get their license plates then drop their coverage. The honest among us then have to pay even higher premiums to cover these uninsured motorists.
  • by Larry Location: Reading on Mar 29, 2013 at 06:27 AM
    The cost of living in this state is getting so bad, I'm thinking of moving to a state that cares more about its people.
  • by me Location: here on Mar 28, 2013 at 05:03 PM
    I agree with Heywood. If EVERY OTHER STATE can survive without unlimited lifetime benefits, we should be able to also. If you want that much coverage, you should be free to buy it, but it shouldn't be mandatory. It won't change, though, because 1-800-CALL-SAM and 1-800-LEE-FREE and the like would lose their golden goose.
  • by mike Location: lansing on Mar 28, 2013 at 01:22 PM
    I'm done,with high taxes,& high insurance.& I'am on a fixed income I am broke thanks state of mich.& lansing.
  • by Michael Location: Jackson on Mar 28, 2013 at 07:57 AM
    Since it is now mandatory for everybody to have medical insurance isn't having medical coverage on your auto policy a bit redundant?
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