Michigan Auto Insurance is the Highest in the United States

It’s ironic that drivers in the Motor City face the highest insurance rates in the country. It’s not uncommon for Detroit drivers to shell out $3,000 or more for a year of vehicle insurance. Michigan’s insurance system is one-of-a-kind. Unlimited medical benefits and disability payouts drive up prices for all Michigan drivers, but Detroit drivers pay the most.

Critics and supporters alike agree that unlimited medical bills and other benefits make insurance premiums out of control in Detroit. However, the benefits are helpful when accident victims need them. Car accident lawyer and insurance experts struggle with how to keep the good while reforming the system in order to lower costs. Some reform strategies from other states might provide insight.

Some states cap no-fault benefits. At this time, Michigan has no cap. In addition, Michigan has no limits for what doctors can charge for no-fault services. The state might benefit from a fee schedule to limit doctor bills for certain services. It already uses this system for workers’ compensation cases.

Michigan might consider using arbitration to resolve cases instead of traditional litigation. Deductibles and co-pays for no-cost services might also reduce the total cost of services. Experts say that more attention to allegations of fraud can also reduce ballooning costs.

Some say that drivers should be able to choose the coverage that they want. They say that more drivers could afford to purchase insurance if they can choose the price that they can afford. Michigan injury lawyers say this insurance doesn’t protect an injured victim when they suffer injuries in a crash.