Why are my Michigan Insurance Premiums Increasing?
Michigan residents are facing a frustrating reality: steadily climbing insurance premiums. From soaring repair costs to shifting legal landscapes, several factors are contributing to this unwelcome trend. I’m sharing a few of the key reasons behind rising insurance costs in our state;
Increased Costs of Repairs: Rising construction costs for materials and labor, coupled with the increasing frequency and severity of Michigan weather events (hail, storms, wind damage), directly impact insurance payouts.
Changes in Lawsuits: The 2023 overturning of the "Open and Obvious" doctrine in Michigan has increased the potential for lawsuits related to slip and falls, leading to higher insurance premiums for all property owners.
Soft Fraud: Inflated claims, even minor ones, increase the overall cost of insurance for everyone.
Data-Driven Risk Assessment: Insurance companies are utilizing advanced data analysis, including satellite imagery and property-specific risk factors (like tree density), to more accurately assess individual risks and adjust premiums accordingly.
Impact of Switching Carriers: Frequent carrier switching can negatively impact your premiums. Loyalty programs and long-term customer relationships often result in lower rates and better claim handling.
by Brianna Schneider
Disclaimer: This information is for general knowledge and informational purposes only and does not constitute financial or legal advice.
