The high amount paid for is pointed to be the cause of soaring auto insurance rates in Michigan. Now, a common driver shell out more than $2,500 a year to cover auto insurance which is said to be the highest in the country.
Insurers justify the high increase of insurance cost to the rising cost of Michigan’s distinctive mandate for unlimited coverage for personal injuries. Last month marked another increase in treating Michigan’s worst accident injuries. The average paid for personal injury compensation is thrice higher than a decade ago.
Because of the expensive cost, many drivers and motorists are on the road without being insured. Legislators are acting upon the matter with a package of bills providing starting point for change that should have been acted upon earlier.
The measure would change the state’s unlimited no-fault system by having a minimum for personal injury coverage at $50,000. This still makes Michigan higher than the minimums of other states except New York which has the same minimum.
Other proposals involved strengthening efforts against insurance fraud and being stricter by the requirement of medical care providers to bill insurers within 3 months of treatment. This allows insurers to make a proper review on accident claims and personal injury compensations in a timely manner.
However, the modifications still do not include any program to offer affordable insurance to low-income drivers. The insurance industry supports the idea of allowing people to buy basic coverage through legislation.
While it is good news to have many people get compensated out of car accidents, it still causes a blow to other motorists. It makes auto insurance expensive. But this must not discourage people from going for a claim for personal injury. What is needed is for authorities to be more watchful in frauds that insurance company might be victims.
