The Truth About Michigan Auto Insurance Rates

Why Do Michigan Auto Insurance Rates Keep Going Up?

Call For The Best Auto Insurance And Truck Insurance Rates In Southeast MichiganMany people like you are very frustrated about their auto insurance rates, and they simply don’t understand why car insurance, auto insurance and truck insurance rates continue to rise; even as their vehicles get older and lose their value over time. Well, there are a few contributing factors here that may surprise you, and once again one them is the rising health insurance and health care costs that never seem to stop.
First of all, the MCCA fee (Michigan Catastrophic Claims Association) for auto insurance which is a standard must-pay fee for insurance carriers, rises almost every 6 months now in Michigan. This auto insurance fee is mandatory for every auto insurance company, and they must pay that fee directly to the state of Michigan.
Remember, Michigan’s no-fault auto insurance law provides unlimited and lifetime coverage for all medical expenses which result from auto accidents and truck accidents. The MCCA reimburses auto insurance companies for each Personal Injury Protection (PIP) medical claim paid in excess of $530,000, so it acts as umbrella coverage for any auto insurance, car insurance or truck insurance claim settled by insurance companies in Michigan.

Did You Know That Michigan’s No-Fault Auto Insurance Laws Cover Catastrophic Health Care Claims?

This Michigan law requirement says that the insurance company is ultimately responsible to pay the entire auto insurance medical claim as a result of an auto accident, and then is reimbursed by the MCCA for all medical costs over $530,000. Due to this unlimited duration policy and a very large number of fraudulent auto insurance claims in Michigan, the MCCA must continually increase their fee to cover the rising expense of this very costly addition to the Michigan auto insurance and truck insurance policies they cover.
In addition, your auto insurance rates will always increase due to an increase in claims during a certain period of time; and remember this as well, auto insurance companies are in business to make a profit and be able to invest for their stockholders. Like the stock market there is always pressure on the upside to make money and stay financially secure, so you can always count on this behavior from insurance companies. Furthermore, if you are ever in an auto accident and your auto insurance policy has to cover the expense then your rates will automatically increase for sure.


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