Reforms to Michigan’s no-fault auto insurance system and other regulatory revisions enacted in 2020 are showing indications of successfully lowering auto insurance premiums and reducing claims costs for insurers, according to a paper co-authored by Patricia Born, Ph.D. of Florida State University and Robert Klein, Ph.D. of Temple University.
Among its range of changes, the package of reforms allows policyholders to opt for less than unlimited personal injury protection (PIP) coverage medical benefits. Previously, the state allowed for unlimited PIP medical benefits, which was the main driver of premium increases in the state, according to the paper.
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