📖 The Scoop
Legislators and consumer groups in Michigan have recently proposed a number of reforms designed to reduce the costs of auto insurance in the state. In this paper, the author examines how auto-crash claiming patterns in Michigan differ from those in other states and considers how these differences might affect consumer costs. It shows that 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.
Genre: Business & Economics / Insurance / General (fancy, right?)
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