Car Insurance In Michigan – Motorists in Detroit and most metro areas – as well as those in the Flint area – must pay more for car insurance because of where they live. Based on claims history, all insurers choose to charge drivers more for multiple types of coverage. But in Detroit, personal injury insurance premiums — which in Michigan, unlike the rest of the state, have no dollar limits — provide enormous additional benefits. Here is the AAA card; other airlines show the same territorial level differences.
Medical bills for injured drivers in Michigan have tripled since 2000 to levels that far exceed health care costs and average treatment costs in large states. In fact, the average cost of a car accident claim in Michigan is more than five times higher than the next highest state.
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Personal injury coverage now represents a large portion of auto insurance premiums. Fixing people is now more expensive than fixing cars.
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And even though premiums are the highest in the country, insurers don’t even make money on car insurance.
These are the findings of an analysis of insurance industry data by Crain’s Detroit Business and Bridge Magazine.
The data shows that the number of dollars collected by personal injury insurance (PIP) in Michigan increased 278 percent between 2000 and 2013, while medical costs increased 145 percent to $3.2 billion, even though the number of injured drivers fell by 20 percent annually. .
Insurance companies’ self-reported data shows a big change in the driving force behind Michigan’s rising auto insurance costs: Premiums once controlled by the cost of repairing cars are now offset by the growing costs of treating injured drivers . and passengers.
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Personal injury insurance coverage – which motorists are required to take out – has risen from a fifth of all premiums collected from car owners in 2000 to more than half in 2013. 14-year period in sector premiums shows data analysis.
Reducing medical costs in Michigan’s private and unlimited insurance for injured drivers to provide assistance to drivers is at the heart of competing legislative proposals that could prompt Michigan lawmakers to act in the coming weeks.
As lawmakers and key groups debate changes, recent government filings from several major auto insurers show that the cost of personal injury protection continues to rise faster than any other category of auto insurance, an analysis of insurance costs shows.
Between 2013 and October of this year, AAA of Michigan base rates for personal injury protection increased nearly 80 percent and now exceed 95 percent of base rates for bond coverage and 88 percent of all coverage, including collision and aggregate.
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At Home Owners Insurance Co. Personal injury insurance rates increased by 46 percent between 2013 and 2017 and cover 88 percent of the mandatory basic coverage.
“The problem is undeniable,” said Mark Bernstein, a Farmington Hills personal injury attorney who is a supporter of Detroit Mayor Mike Duggan’s plan to dramatically reduce medical costs. “Nobody can say with a straight face that there isn’t a problem that needs to be solved.”
But the political battle has hung over the Capitol for years, as a Legislature that loses a majority of its members every two to four years has failed to reach a deal that would lower insurance rates without eliminating what is seen as the best form of car insurance. an accident in America.
“The problem is that no one seems to want to put drivers first — because they all just make too much money,” said Bernstein, a Democrat whose family law firm represents injured drivers in so-called “third-party pain and suffering.” “lawsuits against at-fault directors.
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Without legal limits on how much Michigan hospitals and doctors can charge in a system that faces constant lawsuits, the average cost of each car accident in 2013 was $75,600. That’s more than five times the highest rate of the state, New Jersey, which recorded an average of $13,630 in medical costs for each injured driver.
“I don’t know of anything with a claim weight close to $75 per claim,” said Jim Lynch, executive director of the Insurance Information Institute, a Washington, D.C.-based industry group. “I think it’s up there with flood insurance.”
Largely exempt states such as New York and Florida, which set medical treatment costs for injured drivers and caps on total costs, had average medical costs of $7,876 and $7,700, respectively, in 2013, according to the latest data. available from the National Association of Insurance Commissioners.
Medical costs per driver in New York fell by about 3 percent between 2000 and 2013, while costs increased 12 percent in New Jersey and 9 percent in Florida.
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The data shows that the tripling in costs per injured driver and motorist between 2000 and 2013 exceeded medical inflation during that period by nearly 90 percent.
“The cost of medical care is rising, but when you have a blank check, it’s no wonder people take advantage of it,” said Rep. Lana Theis, (R-Brighton Township), chairwoman of the House Insurance Committee.
Michigan’s highest auto insurance rates nationwide have created an endless seat to encourage war in Lansing between insurers looking to reduce their debt and remain profitable, and hospitals, medical clinics, lawyers and injured drivers involved through no fault. car insurance is a tough industry they are trying to protect.
“It depends on who you slept with,” says Jerry Acker, personal injury attorney and principal of Goodman Acker, PC. in Zuidveld. ‘Hospitals need the money. Insurance companies need money.”
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Theis is sponsoring legislation sponsored by Duggan, a Democrat, and House Speaker Tom Leonard, a Republican, that would significantly reduce auto insurance medical costs by allowing drivers to waive life injury benefits in exchange for a cheaper plan.
The reform plan in House Bill 5013 would allow drivers to opt out of the unlimited medical plan for two parts of $250,500,500, which would not give them access to the Michigan accident insurance fund that currently pays medical expenses over $550,000.
The $250,000 plan has been widely criticized because only $25,000 can be used for hospital care, such as outpatient surgery, rehabilitation or lost wages.
To keep medical dollars flowing, Republican legislative leaders and Detroit’s Democratic mayor want to include Medicare in the payment, which could reduce medical costs in the auto insurance system by as much as two-thirds for some procedures.
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A coalition of two MPs joined hospitals, trial lawyers and the most seriously injured drivers in calling for fewer price controls.
Lawmakers remain deeply divided over what would be the best treatment in America, where money can buy for injured drivers and drivers, while the insurance industry continues to set individual rates based on where the driver lives, education level, creditworthiness, marital status and . other things that have nothing to do with driving.
“The right thing to do is to cover the costs and guarantee the relief amount for Michigan drivers without cutting the benefits people need when they are in a car accident,” said Rep. Tim Greimel, an Auburn Hills Democrat, opposed Duggan’s plan.
The insurer says the data reviewed by Crain’s also includes premiums collected and losses incurred by the Michigan Catastrophic Claims Association, which examines all insured vehicles with a $170 annual premium for long-term care costs exceeding $550,000.
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Critics of the Duggan-Leonard-Theis plan argue that giving drivers a $250,000 coverage option will risk financial crisis for the claims system as drivers will flock to insurance plans with lower rates.
“It will increase costs there because fewer people will have to pay,” said Rep. Michael Webber, R-Rochester Hills.
Complicating the effort to find a compromise in Lansing is the division between the various companies involved in putting into law the state’s payment rates for physicians and the double-digit reduction in premiums that insurance companies can charge in a competitive market .
The Michigan Health & Hospital Association has offered in the past to waive its fees for a period of time, but has maintained a state-mandated payment plan.
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“For providers, it’s like we’re coming up with a proposal that says auto insurers can’t use zip codes to set their rates,” said Chris Mitchell, vice president of the hospital association. ‘I would take a poison pill like that.’
The report examined 14 years of auto insurance coverage and found a dramatic increase in medical costs, even as the number of driver and passenger injuries fell by nearly 10,000 per year between 2000 and 2013.
Auto insurers are required to file their geographic insurance rates with the Department of Insurance and Financial Services. Bridge and Crain analyzed the data to investigate how personal injury prevention is driving the cost of insurance in Detroit and surrounding areas to some of the highest rates in the country.
Individual companies do not have to make their annual data public, but leave the industry-wide reports undisturbed
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