Drivers throughout the state are bracing to once again pay more for their no-fault coverage.
Michigan auto insurance rates are about to head upwards yet again. Motorists are accustomed to seeing their premiums rise as a result of the ever-increasing no-fault coverage fees.
Now, many will need to tighten belts even further to help them afford the new rates in the state.
The rising Michigan auto insurance rates have been problematically high for several years. The upward trend of coverage costs has been a persistent one. State lawmakers have repeatedly tried and failed to overhaul the system. The result has been the most expensive auto insurance premiums in the country.
In fact, the design of the system has made it so that drivers in other states can receive better car insurance at a lower cost. Now, Michigan drivers will be seeing even higher prices than before with an average 13 percent increase in their fees.
The Michigan auto insurance rates are rising as a result of the boost in per-vehicle assessments.
The average per-vehicle assessment in the state will increase to $192 on July 1. The present average per-vehicle assessment is $170. The Michigan Catastrophic Claims Association announced the rising no-fault fees.
These increases are nothing new for Michigan residents, though this years is quite steep. Last year, drivers saw their average per-vehicle assessment rise by 6.3 percent over the year before. Motorists there are paying more for their car insurance on many levels.
Furthermore, they are already paying 20 percent more for their vehicle registrations. Gas prices have risen by 7.3 cents per gallon as a result of rising state taxes. This was the outcome of 2015’s road funding deal.
The Michigan Catastrophic Claims Association board is led primarily by insurance companies. It explained that the average per-vehicle assessment increases are necessary. Claims costs have been higher than expected, said the association. The increase could have been higher, but the claims costs were partially offset by investment returns that were better than anticipated.
The Michigan auto insurance rates system is unique within the country. What makes it different is its unlimited lifetime medical benefits for anyone injured in a collision. The fee funds benefits higher than $550,000 per claim, explained the association.