Michigan Car Insurance Companies | Highest Insurance Profits in History
I recently read an article about efforts to lower Michigan car insurance rates. Melvin Hollowell, the state’s insurance advocate, recently called on the Governor and Legislature to reform the rules governing Michigan’s car insurance companies. Michigan’s car insurance companies are charging some of the highest premiums in the nation and are making record profits at a time when high gas prices and economic anxiety have caused many people to drive less and to drive more slowly and cautiously when they do drive.
Among the Insurance Advocate’s proposals is an idea to offer stripped-down insurance policies to low-income drivers who cannot afford traditional No Fault car insurance. Although No Fault insurance is required by law, 20% of Michigan drivers (1 in 5) cannot afford a policy that meets the current statutory minimum level of coverage. Although 20% may seem high, even this number masks geographic and demographic differences. In some urban areas, as many as 55% of drivers do not have any insurance.
Until these proposals become law, the Michigan car accident attorneys at Buckfire & Buckfire recommend that you review your insurance policy to make sure you have uninsured and underinsured motorist coverage. Be sure to specifically request uninsured motorist and underinsured motorist coverage from your insurance agent. Simply asking for “full coverage” is not enough.
Both uninsured motorist coverage and underinsured motorist coverage are relatively inexpensive when compared to the rest of your insurance coverage. In addition, a large amount of coverage can be purchased for a small amount. Despite this, having this coverage can be extremely important. In one of the cases my firm handled, the injured driver would have been able to collect an additional $480,000 if he had only bought uninsured motorist coverage for less than $80 per year!
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