It’s no secret that Michigan has some of the highest auto insurance rates in the nation. Recent bipartisan legislative efforts to reform the system and lower rates are reported to be paying off, at least in the short term, for area drivers. In Michigan, drivers can now choose their level of coverage, between lifetime medical benefits after catastrophic accidents to much lower levels of coverage. According to a report from the Michigan Catastrophic Claims Association released last week, the lifetime benefit rate is being reduced from $220 to $100, with the rate for lower coverage being removed completely, starting in July 2020. Local Farm Bureau Insurance agent Dan Ochoa told us that it is really a matter of give and take with the new insurance reforms, and while people can now choose to opt out of unlimited coverage for catastrophic accidents, they should be aware that their health insurance may not cover injuries from auto accidents, which could open the door to massive uncovered medical bills in the event of a serious injury. Mr. Ochoa recommended that consumers be careful to make sure their coverage is properly coordinated to avoid being left without medical coverage. The complicated structure of Michigan auto insurance is closely tied to medical costs and the Claims Association credits medical cost controls for the rate decrease.
