Cost Of Uninsured Drivers

We pay more for car insurance in Michigan than any other state, and a new report finds a big factor to that is 20% of Michigan drivers are getting behind the wheel without any insurance at all. Lori Conarton from the Insurance Alliance of Michigan tells us the state’s unique no-fault law that requires everyone purchase unlimited, lifetime medical benefits as part of their policies is overdue for changes to bring the costs down and make it easier for everyone to get insured.

“There is a state fund created to pay for medical treatment of those uninsured accident victims, but the cost of that fund has increased 87% over the last 10 years,” Conarton tells WSJM News. “And those costs are paid by all motorists who are law-abiding and paying into the insurance system.”

The average auto insurance premium in Michigan is $1,364 a year according to the National Association of Insurance Commissioners. Conarton says they have cost controls they’d like to see enacted to bring those rates down.

“Such as a fraud authority to fight back against fraud in the system. We need to have a fee schedule so that the medical costs are more consistent,” and she adds the Insurance Alliance of Michigan believes people should be allowed to choose their benefit level for medical coverage instead of requiring everyone carry the lifetime unlimited plan.

Lawmakers have attempted to modify the system for years. Conarton says those efforts have failed due in large part to powerful lobbyists from industries that make money by keeping the status quo.