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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.

Tracy Samilton covers the auto beat for Michigan Radio. She has worked for the station for 12 years, and started out as an intern before becoming a part-time and, later, a full-time reporter. Tracy's reports on the auto industry can frequently be heard on Morning Edition and All Things Considered, as well as on Michigan Radio. She considers her coverage of the landmark lawsuit against the University of Michigan for its use of affirmative action a highlight of her reporting career.