Portage, Mich., Dec. 23, 2011 - State Farm Mutual Automobile Insurance Company, the largest insurer of autos in Michigan, and in the nation, is increasing its overall private passenger rate level in Michigan an average of 2.1 percent effective Jan. 23, 2012.
The price of mandatory coverages, which include personal injury protection (PIP) and liability, is going up. The price of mandatory coverages represents nearly half of a customer's insurance premium. PIP coverage pays all necessary medical costs, wage loss and replacement services incurred from an auto accident. Michigan is the only state to mandate unlimited lifetime medical benefits for those injured in auto accidents.
According to the Insurance Research Council, average paid PIP claims increased a staggering 266 percent from 2000 to 2010. State Farm believes customers should be allowed to choose the level of PIP coverage that best fits their needs and their budget.
Premiums for the limited property damage, collision and comprehensive coverages will go up for some and down for others. The comprehensive coverage pays for losses from such perils as theft, storm damage, fire, vandalism and glass breakage.
Overall premium changes for individual motorists will vary depending on factors such as the coverages they carry, the discounts for which they qualify, where they live, the kind of car insured, who drives it and how much it is driven.
About one in every five cars insured in Michigan is insured by State Farm.
Angie Rinock, State Farm Insurance, (269) 384-8561.
State Farm and its affiliates are the largest provider of car insurance in the U.S. and is a leading insurer in Canada. In addition to providing auto insurance quotes, their 17,800 agents and more than 65,000 employees serve 81 million policies and accounts - more than 79 million auto, home, life and health policies in the United States and Canada, and nearly 2 million bank accounts. Commercial auto insurance, along with coverage for renters, business owners, boats and motorcycles, is also available. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 37 on the Fortune 500 list of largest companies. For more information, please visit http://www.statefarm.com or in Canada http://www.statefarm.ca.