Michigan Auto Insurance Premiums Are About To Rise 6 to 15 Percent
If Michigan auto insurance premiums were not already overinflated, you may want to brace yourself for a 6 to 15 percent increase.
Reason Michigan Auto Insurance Rates Are Going Up
Michigan's auto insurance rates are one of the worst in the entire United States and now companies are going to raise premiums again in 2022. They are claiming it is because of supply chain issues and inflation.
Vehicles new and used cost a lot more which makes car parts cost more when you actually have to fix one so companies are claiming the higher cost merits their price hike.
According to FOX 17, Michigan insurance rates will go up 6 to 15% in 2022.
How High Are Michigan Insurance Rates Compared to the Other States?
Michigan is only second to Louisianna for the highest insurance premiums in America. This means it's cheaper to drive in California, New York, and Hawaii than it is in Michigan.
It has been three years in a row that Michigan and Louisianna have let the entire country in high auto insurance. The average rate for Michiganders is 459% higher than most other states. The average premiums range around $2500.
Why Are Michigan Insurance Premiums So High?
No-fault insurance and PIP insurance is the reason. No-fault states require drivers to carry PIP insurance that covers their own medical bills in case of an accident. Unlike fault states where a person who caused the car accident must use their liability insurance to pay for the other driver's injuries.
Insurance Companies Are Scamming Michiganders
I have lived in Michigan and Indiana and I have had no-fault insurance and fault insurance. Fault insurance is way cheaper by far. What is even crazier, I had to fix a door once from a deer running into my truck. I lived near the Indiana/Michigan border in Indiana. So I looked up body shops on both sides of the border and the prices were almost exactly the same, so where is the extra money going for premiums in Michigan?
If Michigan's rates are 459% higher than other states, how are other states able to keep the rates down? Auto parts cost the same for the most part everywhere. The supply chain issue is the excuse every major company is using to gouge people out of their money.
Michigan's policy change back in 2020 was another misleading rip-off by our politicians who accept lobby money for their campaigns from insurance companies. Most Michiganders did not save anything because of the PIP insurance policies. This is going to have to change starting with our Michigan government as well as all the Michigan auto insurance companies.
We are human beings, not cars or trucks so we shouldn't have a deductible on our bodies, isn't that what insurance was supposed to be for in the first place?