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Benjamin Zitney Rancho Cucamonga CA, 91730 9097842475 |
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OnlineAutoInsurance.com can help consumers find the lowest rates for coverage in a state that has higher-than-average costs.
Online PR News – 27-January-2011 –A new Insurance Information Institute (III) presentation calls the Michigan property and casualty industry a large, positive influence on the state economy. But the III notes that the state also has a large, systemic coverage problem — namely, the Michigan no fault auto insurance system.
According the presentation, given by III President Robert Hartwig, the insurance industry supplied the Wolverine State with more than 72,000 jobs in 2009, which amounted to more than $4 billion in compensation being paid out.
“Insurers are increasingly important to Michigan’s economy, now accounting for nearly 4 percent of economic activity in the state,” the report says.
But a widespread problem with the Michigan car coverage system has helped push premiums for motorists to excessive levels.
According to the III, the state’s average no-fault claim comes in at more than twice the average amount for the next highest state. The average for Michigan is $36,463. New Jersey, which has the second highest, has an average of $16,331. And Hartwig notes that the trend has only gotten worse in recent years, with the average size of a Michigan no-fault claim having increased by approximately 50 percent since 2004.
Although Michigan ranked as only the 11th most expensive state for average car coverage expenditures in 2008, the city-by-city statistics tell a different story. According to data from the National Association of Insurance Commissioners, the average Michiganian paid $907 for coverage that year. But Detroit was ranked as the most expensive city in the nation for coverage. The average auto premium for Detroit residents in 2007 has been estimated to be $5,948.
Problems with the no-fault system have been well-documented. The state’s consumer advocate has noted that the personal injury protection coverage in the state “provides health care coverage for life, and up to $4,589 a month for lost wages for a maximum of three years. Michigan is the only state in the nation which protects its citizens in this manner.”
Source: http://www.michigan.gov/documents/lowerratesnow/EXECUTIVE_SUMMARY_266162_7.pdf
To learn more about coverage issues in Michigan, readers can go to http://www.onlineautoinsurance.com/michigan/ where visitors will find informative resource pages and a free-to-use quote-comparison generator that can help consumers track down the lowest rates.
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