Michigan knocked Louisiana as the state number 1 in the country for having the highest average annual auto insurance premium. The average premium of the State has increased by more than $ 440 since 2010, enough for the state to rise to second place in the first place.
The main reason for the hefty increase in premiums was due to the annual assessment of Michigan Catastrophic Claims Association (MCCA). All insurance companies operating in the state are responsible for Wolverine exchange disastrous Michigan medical requirements. Unfortunately, this means that drivers pay eventually because the costs will be passed to the consumer. This means that insurers endure the most of approximately $ 144 per car-accrued expenses transferred to the owner of the car, for 2010-2011.
Another reason for the increase in premiums associated with uninsured motorists and the damage they cause, the costs of which are transmitted to the driver, who then make claims on their uninsured / underinsured coverage. Seventeen percent of Michigan drivers were driving with no insurance coverage, according to a study in 2009 Research Council on insurance.
The economy plays a role in a large number of uninsured; the number of uninsured motorists tend to grow with unemployment.
Laws of compulsory health insurance Michigan
Law in Michigan requires no fault insurance. Importantly, the basic no-fault insurance does not pay for your car repairs; so you will want to discuss with your insurance company or agent, the best coating to protect your car.
It is mandatory to carry out Michiganders minimum auto insurance, including personal injury protection, otherwise known as PIP. In addition, the minimum outside coating, each motorist must acquire the following:
- $ 20 000 – injured, one person
- $ 40 000 – bodily injury, an accident
- $ 10 000 – property damage
The steep cost of driving while uninsured
Since Michigan is a state without fault if you do not wear a basic no-fault insurance, you can be held personally liable for any car accident you cause. You are also at risk of exposure to prosecution.
Other potential penalties may include:
- Misdemeanor charges
- Up to $ 500 in fines and / or to serve a prison sentence of up to 12 months
- Suspension of license for up to 30 days before the date on which you provide proof of current auto insurance policy
Watch this video to find out more about Michigan car insurance rates: