PIP Mandate Keeps Michigan's Auto Premiums High

commentary

Jul 18, 2012

A man driving in a tunnel

This commentary originally appeared on The Detroit News on July 17, 2012.

As of this month, the Michigan Catastrophic Claims Association (MCCA), which pays for the most expensive auto injury claims in the state, requires all Michigan drivers to pay an additional $30 a year for car insurance.

This represents the largest such fee increase in a decade, and means that each Michigan driver will pay $175 per year just to cover the cost of claims above $500,000. Detroit already leads the nation in auto insurance premiums. Insuring a typical small Chevy, for example, costs $5,941. As a result, and ironically so in the Motor City, about half of Detroit's drivers are uninsured....

The remainder of this op-ed can be found at detroitnews.com.


Paul Heaton is an economist and Acting Director of the RAND Institute for Civil Justice at the RAND Corporation, a nonprofit, nonpartisan research institution.

More About This Commentary

Commentary gives RAND researchers a platform to convey insights based on their professional expertise and often on their peer-reviewed research and analysis.