Michigan residents are well aware that their auto insurance premiums are continuing to rise. According to the Detroit Free Press, auto insurance rates in Michigan have been steadily increasing since 2009. Insure.com reports that as of 2016, the state of Michigan has the costliest auto insurance rates in the entire United States. In fact, Michigan has had either the most or the second most expensive car insurance premiums for the previous six years in a row.
Numerous factors may play a part in these rising auto insurance premiums, but the largest variable pertains to Michigan’s unique automobile no-fault coverage. Many states in the nation offer a variation of auto no-fault coverage for their clients, but Michigan is the only state in the U.S. to provide unlimited no-fault coverage for those injured in an auto accident. Furthermore, injured claimants are eligible to receive payment for up to three years of covered wages if they were unable to return to work due to injuries sustained in an auto accident. This generous auto no-fault coverage comes at an incredibly high cost, both to insurance companies and their insureds. The Detroit Free Press reported that insurance companies in Michigan incurred nearly three billion dollars’ worth of costs for the 44,620 no-fault claims in 2012.
While the state’s no-fault coverage may play a significant role in the rising cost of auto insurance, the advancing technology and rising costs of medical treatments and prescription drugs also affect Michigan residents’ premiums. Customized wheelchairs and other rehabilitation equipment are sometimes prescribed for injured claimants, for example. Insurance companies can quickly see a rise in overall auto no-fault medical claims costs if they are not proactive in controlling expenses.
Insurance companies may not be able to bring immediate change to Michigan’s no-fault laws or control the costs of rapidly advancing technology, but they do have an option to help hold down auto insurance rates for their claimants. Northwood is a trusted and highly experienced third-party administrator (TPA) of auto no-fault claims and can assist insurance companies with the rising costs associated with these claims. Through its credentialed and extensive network, Northwood offers insurance companies the opportunity to provide reduced rates on medical services to their claimants, with no out-of-pocket cost involved. Northwood also offers highly trained customer service staff members who are available 24 hours per day and seven days per week, ensuring high levels of claimant satisfaction.
By partnering with a TPA such as Northwood, insurance companies will realize significantly reduced auto no-fault claims costs. As these cost-saving measures are implemented, insurance companies will be better able to hold down further increasing auto insurance premiums for their insureds. Proactive management of no-fault claims is vital to an insurance company’s success, and representatives from Northwood are available to assist with providing additional information.Leave a reply →