Would you like to live in a place where you have to mandatorily purchase champagne worth $250 when you go out to dine? Of course, not! However, the people of Missouri are biting their teeth and living through this craziness. The auto insurance providers in this state have to offer only the costliest insurance policies to people looking for policies.
The rule by the government coupled with other growing concerns like the high unemployment rate and dwindling economy has made life tough for the citizens in this state. Though the people do get the option to claim to the maximum extent possible, they are not really happy. The cost of insurance in Michigan is the second highest in the country. Detroit is the place where the auto insurance policies are the costliest.
The politicians in this state are bending over backwards to find a solution to the growing woes of the residents since people in thousands are leaving the state each year to find a better and affordable place to live. The burgeoning budget crisis in most of the cities is not offering any respite. A lot of proposals passed by the government in recent times only curtail the amount that can be charged as premiums.
These proposals are in no way offering respite and reducing the insurance cost. In fact, if this continues for long, most of the auto insurance companies in the state will down their shutters and scout for better places, thus leaving Michigan in a lurch.
If the law makers have to come up with an apt solution for the current crisis, they have to delve deeper and target the cause and not just the superficial costs. The process of writing the insurance policies have to worked upon.
Every state of the United States, excluding New Hampshire, has made it mandatory for every citizen to have at least the most basic auto insurance policy.
In Michigan, people are forced to opt for the unlimited PIP (personal injury plan) irrespective of whether they want it or not. This implies that in case of any mishaps, the insurance providers will cover all the medical costs or the victims irrespective of who was responsible for the accident. In addition to medical costs, the insurance providers will also compensate for lost wages, rehabilitation and other costs for the entire lifetime of the victim.
Despite the accident rates coming down drastically in recent times, the auto insurance premiums are still trending northward which is leading to growing displeasure among the citizens of this state.