Auto insurance companies in Michigan raise rates by half a billion dollars
Analysis of 35 car insurance companies in Michigan shows they're raising rates by an average of seven-point-two percent. That's a total of nearly $500-million dollars.
Doug Heller is director of insurance for the Consumer Federation of America. He says it shows that the state's 2019 auto no-fault law broke a promise to lower the cost of car insurance.
"It is staggering the amount of rate increases that Michigan drivers will be seeing on their bills over the next several months," Heller said.
State Farm has the highest number of customers in Michigan. Its rates rose nearly 8 percent. Progressive has the second highest number. Its rates rose nearly 9 percent.
Erin McDonough is head of the Insurance Alliance of Michigan, an industry group.
She says the cost of medical coverage on car insurance policies has gone down, but inflation may increase the total cost of insurance.