Medical bills for injured Michigan motorists have tripled since 2000 to levels that far outpace normal health care inflation and the average treatment costs in larger states.
Personal injury protection coverage now accounts for the majority of auto insurance premiums. Repairing people now costs far more than repairing cars.
And despite premiums that are the highest in the country, auto insurers aren’t even making money on auto insurance.
A Crain’s analysis of industry data shows total premium dollars collected by insurers for personal injury protection (PIP) soared by 278 percent in Michigan between 2000 and 2013, while medical costs rose by 145 percent to $3.2 billion, even though the number of motorists injured annually declined by 20 percent.
The self-reported data from insurance carriers reveals a major shift in the leading cause of the ever-rising cost of auto insurance in Michigan: Premiums that were once dominated by the cost of repairing vehicles are now swamped by the growing cost of treating injured drivers and passengers.