Michigan State Considering New Auto Insurance Regulations

It is estimated that the cost of auto insurance in Michigan is three times higher in city like Detroit then it is in the country side. That puts the city folks in Michigan at a considerable disadvantage compared to the rural area residents when it comes to purchasing auto insurance coverage.

And skipping auto insurance in Michigan is not a safe option as it is illegal in Michigan to drive without basic liability and personal injury insurance.

Michigan is the only state in United States that offers unlimited medical which adds to the cost of the auto insurance. And it is the Michigan Catastrophic Claims Association which covers the claims above $420,000.

So the new initiative in Michigan promoted by some lobbying organizations is to reduce the medical coverage to levels on pair with most other US states. The results of that move are estimated to enable reduction of auto insurance premium costs by 32 percent of the mandatory policy fees. And that in turn is expected to reduce the number of uninsured drivers by 40 percent.

New Auto Insurance Climate In Michigan

The state house in Michigan has just passed two bills that might be of benefit to drivers over 50 years old. The catch is that they must complete a traffic accident prevention course in order to qualify but once they do - such drivers would qualify for an auto insurance fee discount. The bills are now being moved to the state senate. The word has it that the bills were introduced to provide a relief to the older Detroit drivers.