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Michigan auto insurance premiums to rise $2 in JulyPosted On Tue, March 29, 2011
Michigan motorists will likely be spending just a little bit more on their auto insurance premiums once July arrives.
According to the Michigan Catastrophic Claims Association, it will cost motorists approximately $1.91 per year because, starting in July, insurance companies will be required to pay out more in claims to help cover the cost of lifetime medical expenses for people seriously injured in an accident.
Michigan, which has no-fault insurance laws on the books, is the only state that requires unlimited lifetime medical benefits for people involved in an accident. No-fault auto insurance requires that insurers pay claimants directly for their losses, regardless of who is to blame for the crash.
The MCCA says $897 million in 2010 was spent for claims costs resulting from catastrophic injuries, the majority of which involved head injuries.
Though the increase is moderate, Michigan motorists already pay the highest auto insurance premiums in the country. According to a national survey of auto insurance premiums conducted by Insure.com, Michigan residents pay an average auto insurance rate of country $2,541 per year.
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