Why your car insurance rates are going to rise

LANSING, Mich (WLNS) – In Michigan we already pay the highest car insurance rates in the country and premiums are about to go up again.

So why will you be shelling out more cash on your next policy?

The average cost for a car insurance policy in our state is more than double the national average and we’re about to tack on another ten dollars because of how Michigan handles “catastrophic claims”.

Those claims cover insurance costs that can last for a lifetime, including treatments for things like brain and spinal chord injuries.

A ten dollar fee was already added on last* year and now it’s happening again.

Michigan is the only state that requires drivers buy unlimited medical benefits in case of an auto accident injury.

And come this July the price for what’s considered catastrophic claims will rise to $170 per vehicle.

“The cost of auto insurance is going to continue to increase because, one the number of accidents is increasing, two the costs of those accidents is increasing,” explains Lori Conarton of the Insurance Institute of Michigan.

Conarton says Michigan’s no-fault insurance law guarantees if you’re in an accident your insurance will cover your medical bills no matter how high they are.

And when it comes to these catastrophic claims that can involve brain and spinal chord injuries, it adds up.

“If somebody’s injured when they’re young that means that all reasonable and necessary medical treatment will be paid for the rest of their lives.”

Greg White has been an insurance agent in Lansing for 35 years.

He says this increased fee is concerning.

“It’s a legitimate concern for everyone from individuals that have a single car in the household. For business owners that have fleet vehicles the insurance industry is concerned by it.”

White says many Michigan drivers already can’t afford car insurance, and roughly twenty percent don’t have it.

But while the state maintains it’s no-fault status he doesn’t see the costs coming down.

In the meantime he says the best thing for you to do is talk to your agent and make sure you aren’t paying for any extra coverage you don’t need.

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