If there’s one thing that seemingly every candidate voiced support for in the mid-term elections in Michigan it was finding a resolution for the sky high auto insurance rates we all pay in the Great Lakes State. Now comes the Insurance Alliance of Michigan, an industry group advocating for insurers across the state, which is calling for action before the end of the year on a resolution.
The Insurance Alliance of Michigan is urging the Legislature to pass real reforms during lame-duck session to fix Michigan’s broken, outdated auto no-fault system and bring relief to drivers paying the highest auto insurance premiums in the country.
Dyck Van Koevering is General Counsel for the Insurance Alliance of Michigan. He argues, “Lawmakers have spent the last several months going door-to-door and meeting with their constituents and now have an opportunity to address one of the biggest burdens facing Michiganders: The cost of auto insurance.” He adds, “We urge the Legislature to enact real reforms to bring down the cost of auto insurance and bring relief to drivers paying the most expensive premiums in the country.”
For the fifth straight year, Insure.com ranked Michigan No. 1 for having the most expensive auto insurance premiums in the country. According to the website, car insurance in Michigan costs – on average – $2,239 and is 64-percent more expensive than the national average.
By comparison, Michigan’s neighbors – Indiana, Ohio and Wisconsin – offer some of the most affordable auto insurance premiums in the country. The average cost for car insurance in Indiana is $1,091. In Wisconsin, the average premium is $1,084. And in Ohio, the average car insurance premium is $944.
Van Koevering says, “The report by Insure.com shows, once again, that Michigan is No. 1 for all the wrong reasons,” and adds, “We urge lawmakers to fix Michigan’s broken, outdated auto no-fault system by cracking down on fraud and abuse, stopping hospital overcharging and giving consumers a choice in their level of medical coverage – just like every other state.”
Michigan is the only state in the nation that forces drivers to purchase unlimited, lifetime medical benefits with their auto insurance. This expensive mandate is one of the biggest factors driving up the cost of auto insurance in Michigan.
The Legislature’s lame-duck session begins today, Tuesday, November 27th and runs through December 20th.
The Insurance Alliance of Michigan, which was formed in 2017 when the Michigan Insurance Federation and Insurance Institute of Michigan joined together, is headquartered in downtown Lansing and represents property/casualty insurance companies that annually underwrite more than $12-billion in insurance. IAM member companies provide insurance to approximately 90-percent of the property/casualty insurance market in Michigan.
IAM’s purpose is to serve the Michigan insurance industry and the insurance consumer as the key resource for legislative and public information on property/casualty insurance issues.
