We know Michigan has some of the highest costs of insurance than any other state in the United States. If you are in an automobile accident, your insurance premium cost raises more than any other state, according to studies.
Since Michigan forces drivers to purchase no-fault insurance, we have the highest insurance rate raises after accident claims. This causes Michigan auto insurance owners to pay higher premiums after accidents and causes insurance to be less and less affordable for Michigan drivers.
Michigan is not only known for how expensive their auto insurance is, but we also are considered the worst state to file an auto claim in too, causing an increase of over 48% after an at-fault accident is filed against you. This has Michigan auto insurance owners paying around $3,502 dollars in insurance premiums after claims.
Even though there are other states that have huge increases in their insurance premiums after claims are filed, Michigan is considered to be the highest according to a study of 10 different Michigan areas.
This year, Michigan passed a law that allows auto owners to choose from different options for medical coverage and decline unlimited lifetime personal injury protection. Many motorists chose this option because of Michigan’s expensive insurance that states that the driver’s insurance company must pay for damages regardless of who caused the accident. This no-fault insurance has caused insurance premiums to go through the roof.
This legally required no-fault insurance coverage covers property damage and personal damage. If drivers want to have coverage that pays for the damage done to their own vehicle, they are forced to pay more money and add additional coverage. Michigan has a tort law that allows the motorist to sue the driver that is at fault for the accident, but only up to $1,000 dollars in damages.
Some people believe that the price increase should only last 5 years after a claim, and then if the driver keeps a clean driving record, the price can decrease dramatically. If a driver has an accident, they are at a high risk of losing their good driver discount. But if it is a first incident and a minor claim, most insurance companies will not raise the insurance.
Since new legislation in Michigan prohibits the setting of car insurance rates based on factors of race, gender, education and where a person lives, the safety record of the driver could mean that insurance premiums raise more than 48% after any accident.
Even though after a claim, rates can skyrocket, some of the reforms could cause the base rate to be lower, making Michigan auto insurance a little more affordable.
Since the year 2000, the cost of vehicle repairs increased up to 66%, helping to contribute to the increase of insurance premiums after an incident. These repair increases happened because of the cost of parts increasing and become more expensive such as sensors and calibration parts. According to a study, vehicles that have automatic emergency braking systems and other warnings can cost up to twice as much to repair after a crash. Also, technology in the newer vehicles is so advanced, it costs way more for vehicles to be repaired or replaced after an accident.
Michigan’s auto insurance laws and possible changes have been all over the media lately. But just because you have been at fault in a car accident, you can still work with a local insurance agent who will work hard to find rates that are affordable for you. Our mission at Entrust is to shop for these better rates FOR YOU, so you don’t have to waste time comparing (even though the big “comparison” sites that still take up to an hour or longer).