Michigan is the most expensive state for auto insurance, and drivers can save on costs by comparing quotes. No-fault car coverage is one of the reasons why insurance costs in Michigan are so high, as it allows insurers to cover medical bills even when the accident wasn't the policyholder's fault. Reports show that about 10 percent of no-fault insurance claims in Michigan are fraudulent, and insurance companies suffer from high rates of insurance fraud every year. Additionally, Michigan has a high number of uninsured drivers, which leads to higher premiums for those who do have insurance.
To reduce costs, Michigan legislators have suggested reforms to eliminate no-fault coverage, but this could lead to an increase in auto insurance claims and leave many injured victims without coverage for their medical bills. A Michigan Senate bill will allow drivers whose health insurance covers car accidents to bypass PIP coverage, and Michigan insurers currently use non-driving factors to determine insurance rates. Insurance-related organizations have encouraged the Michigan legislature to develop strict measures against auto insurance fraud, and a bill has already passed that will establish a vehicle insurance fraud committee overseen by Michigan police. Understanding why Michigan car insurance is so expensive requires looking at all of these factors.
No-fault car coverage allows insurers to cover medical bills even when the accident wasn't the policyholder's fault, and this added benefit is one of the reasons why insurance costs in Michigan are so high. Reports show that about 10 percent of no-fault insurance claims in Michigan are fraudulent, and this leads to higher premiums for those who do have insurance. To save on car insurance costs in Michigan, drivers should compare quotes from different companies and look for discounts. Additionally, they should consider getting health insurance that covers car accidents so they can bypass PIP coverage.
It's also important to be aware of non-driving factors that can lead to higher premiums and be aware of any reforms that could affect their coverage. Finally, drivers should be aware of the risks of driving without insurance in Michigan and understand how fraud affects their premiums.
