September 09, 2011
By: Jana Bell
To keep Michigan auto insurance premiums competitive with other states, the Michigan Chamber of Commerce says sweeping reforms need to take place, based on a recent study.
In order to keep Michigan a no-fault auto insurance state, the Michigan chamber recommends that limits be placed on the system's benefits, that consumers be allowed to choose the benefits they receive and that the state develop a more coordinated plan that fights claims fraud.
"The Michigan chamber supports a no-fault auto insurance system that balances the needs of injured drivers while protecting against fraud and excessive litigation and reforms that allow for flexibility, competition and choice in the marketplace," said Rich Studley, president of the Michigan Chamber of Commerce.
He added that because Michigan's no-fault system is the "most generous" in the U.S., policyholders pay some of the highest premiums of all the 50 states. Studley said premiums in the Wolverine State have risen 30 percent in the past 10 years compared to 14 percent at the national level.
Only a handful of states have no-fault auto insurance laws on the books, a list which includes Florida, New York, Colorado and New Jersey.
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