Michigan Drivers Pay the Price

It is not news that medical costs have been increasing significantly, driving up the price of auto insurance for Michigan policyholders. During the last 10 years, the average auto insurance Personal Injury Protection (PIP) medical claim rose more than 166 percent, from $13,617 in 2000 to $36,245 in 2010.

In addition, under the current system, auto accident injury costs appear to be higher in Michigan than other states. According to a 2010 study by the Rand Institute for Civil Justice, injury payments in Michigan are 57 percent higher than other states, resulting in 17 percent higher premiums. Also, Michigan motorists are 19 percent more likely to claim reimbursement for a hospital visit and 25 percent more likely to claim reimbursement for emergency-room use.

In 49 other states, drivers have choices in the amount of medical coverage they purchase in their auto insurance policies. Michigan drivers deserve the same opportunity.

The average auto insurance premium in Michigan is $1,035 according to the most recent data available by the National Association of Insurance Commissioners. Meanwhile, neighboring state residents pay a lot less due to lower mandated benefits. The average auto insurance premiums in states bordering Michigan follow: Ohio ($693); Indiana ($700); Illinois ($798) and Wisconsin ($641). The cost of auto insurance could play a part in a person’s decision whether or not to relocate to Michigan.

If policyholders had a $250,000 coverage option, they would continue to have the best benefits in the country – 500% higher than the next highest state. The medical limits for the other no-fault states follow: Florida, $10,000; Hawaii, $10,000; Kansas, $4,500; Kentucky, $10,000; Massachusetts, $8,000; Minnesota, $40,000; New Jersey, $15,000; North Dakota, $30,000; Pennsylvania, $5,000; and Utah, $3,000.

Most accidents result in injuries below $250,000. In a study by EPIC Consulting, LLC., 98 percent of all auto accident injuries are below $250,000.