Insurance lawyer asks State Farm: Why do we have to fight for our deserved No-Fault benefits… and where the heck is our savings?
Our insurance lawyers want to stress that State Farm is definitely not like a good neighbor. State Farm comes in at No. 3 on my list of the worst insurance companies in Michigan. In my opinion, this insurance company has been the most aggressive in fighting its customers before paying no fault insurance benefits.
And it’s a profitable strategy – unless you need State Farm insurance benefits.
In 2009, State Farm managed a $777 million national profit. As an insurance lawyer, I don’t begrudge State Farm for making a profit. But I do blame State Farm for overcharging Michigan drivers. Here’s how the calculation was made: since 1996, auto accident claims in Michigan have declined by 54 percent and the average miles traveled have dropped to the lowest in 17 years. Yet insurance rates continue to skyrocket, as Michigan has the second most expensive car insurance in the nation (right behind Louisiana).(1)
State Farm was one of those insurance companies that lobbied hard to convince the Michigan Legislature to enact the harshest auto accident injury (threshold) law in the nation in 1995, promising that Michigan residents would reap substantial savings on their premiums as a result. Well, auto accident lawsuits have fallen 54 percent since then, which means insurance companies are saving hundreds of millions of dollars in litigation payouts.
State Farm, where is our savings?
Read here for more information on why No-Fault auto insurance is so expensive and the real reason your Michigan insurance rates keep going up.
Source: 1 “Where Auto Insurance Is Most Expensive” – The New York Times, April 14, 2010
– Steven Gursten is head of Michigan Auto Law. He is recognized as one of the nation’s top insurance lawyers handling serious auto injury cases. Michigan Auto Law has received the highest jury verdict for a car accident or truck accident in seven of the last 10 years, according to Michigan Lawyers Weekly.
Additional resources to protect yourself:
Michigan Auto Law is the largest law firm exclusively handling car accident, truck accident, motorcycle accident and no fault insurance lawsuits throughout the entire state. We have offices in Farmington Hills, Detroit, Ann Arbor, Grand Rapids and Sterling Heights to better serve you. Call (800) 777-0028 for a free consultation with an auto insurance lawyer. We’re here to help you now.