Auto Insurance Reform in Michigan: What Can the Data Tell Us?

Auto Insurance Reform in Michigan: What Can the Data Tell Us?

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Legislators and consumer groups in Michigan have recently proposed reforms designed to reduce the costs of auto insurance in the state. The fact that premiums are higher in Michigan than in other states can be explained by higher levels of reimbursement provided to injury victims and their medical providers. This pattern suggests that reforms that change claiming behavior may have considerable potential for lowering auto premiums in Michigan.