Auto Insurance in Michigan: Regulation, No-Fault, and Affordability

Written by one of America's foremost authorities on auto insurance, this study is a thorough review of Michigan's Essential Insurance Act and No-Fault Law. Harrington examines in-depth the structure of rates in the state and explains that they are not the result of price-gouging or insufficient competition. He analyzes the effects of the state's insurance regulations, and makes suggestions that would increase competition, lower costs, and limit the interference of government in a free insurance market. 33 pages.

Contents

• I. Introduction and Summary
• II. Overview of Automobile Insurance in Michigan
  • Types of Coverage
  • Regulation
  • Magnitude and Growth in Premiums and Losses
• III. The Essential Insurance Act
  • Background and Rationale
  • The Shavers Decision
  • Critique of the Rationale for the Act
  • Consequences of the Act
  • Territorial Rating
• IV. Preserving and Improving No-Fault
  • The Case for No-Fault: A Review
  • Personal Injury Protection Coverage
  • The Tort Threshold [71]
  • Optional No-Fault
• V. Regulation and Competition
  • Insurance Market Structure and Ease of Entry
  • Profitability
  • Efficiency
  • Consequences of Increased Regulation
• Endnotes
• About the Author