State Farm Car Insurance Policy Rates For Michigan Drivers Increase

Sunday’s Post 1.1.12 –  State Farm clients in Michigan face increases in their car insurance rates in 2012. January 23rd, the auto insurance carrier will elevate rates for personal car insurance policy rates  2%.  The price of property damage, collision coverage and comprehensive insurance rates will go up for some clients, but may decrease for some others. The cost of the State mandatory Portions of  the auto insurance policies – such as liability and coverage and personal injury – will go up for all policyholders according to State Farm Auto Insurance Agents. State Farm Car Insurance is one of a group of vehicle insurance companies in the State of Michigan who are lobbying for amendments to that state’s no fault system. Carriers and industry lobbyists state that increases in PIP filings have caused costs to increase for insurers, which directly correlates to higher car insurance rates for motorists.

Opponents of the no fault system say that it must be completely changed to keep coverage rates from increasing exponentially, which would force carriers to raise auto policy rates to maintain profit margins. Medical care providers and other parties who are against changes to the system contend that revamping it would lead to bankruptcy for crash victims and their dependents, since they would assume the financial responsibility for care if the changes go into effect. Under the current no fault system, instated by the State of Michigan during the 1970’s, motorists throughout Michigan contribute to a fund administrated by the MCCA (a fun that covers costs for catastrophic claims over $500,000). Those contributions are made as a line item in the cost of registration for cars, with the current assessment set at $145 per registration.


Michael E. Dortch
President &  Managing Agent
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602