Michigan drivers are seeing a major discount in auto insurance coverage prices following adjustments to the state’s no-fault system in 2020, based on a paper from the Insurance Information Institute (Triple-I).
The paper, co-authored by Triple-I non-resident students Dr. Patricia Born of Florida State University and Dr. Robert Klein of Temple University, discovered that private auto insurers are paying out fewer claims, and policyholders are paying much less in premiums.
“Our initial evaluation of the likely effects of the reform legislation indicates that it is significantly reducing the costs of auto insurance for many Michigan drivers,” the paper learn. “How much these reductions will be for any given driver will depend on the PIP (personal injury protection) option they choose among other factors.”
Prior to the enactment of its no-fault auto insurance coverage system reform regulation in July 2020, Michigan was constantly recognized as one of the costly states for private auto insurance coverage protection.
This is as a result of Michigan was the one state to supply limitless medical advantages by the PIP portion of an auto insurance coverage coverage, the paper revealed, along with insurers being severely constrained in controlling the medical prices arising from PIP claims.