Auto Insurance Expensive For Wayne State University Students: Why?

Auto insurance in Michigan is among the most expensive in the US, and Detroit's rates are 74% higher than the national average. Wayne State University offers a voluntary employee benefit program for auto and home insurance that can save employees time and money. This is through an exclusive discount from Liberty Mutual, which also offers additional discounts based on age, driving experience, and auto equipment. The University's Alumni Association also partners with the Alumni Insurance Program and Liberty Mutual Insurance to offer auto and home insurance discounts.

Michigan's high insurance costs

Michigan has the most expensive auto insurance in the US. The average cost of auto insurance in the state is $5,471 for a full-coverage policy, while the average for a policy meeting state minimums is $3,688 per year, nearly 300% higher than the national median rate.

There are several reasons why Michigan's auto insurance costs are so high:

• Michigan is a no-fault state, meaning drivers must have personal injury protection (PIP) coverage, which covers financial losses regardless of who is at fault in an accident. This additional coverage is a major reason for high insurance premiums.
• Michigan has extensive minimum coverage requirements, including unlimited PIP coverage, which guarantees unlimited lifetime medical benefits to those injured in an auto accident.
• Michigan has the second-highest number of uninsured drivers in the US, with almost 26% of drivers lacking auto insurance.
• There is a high rate of insurance fraud in Michigan, with an estimated 10% of no-fault insurance claims being fraudulent.
• Michigan has a short processing time for claims, with insurers required to reimburse claims within 30 days, which may not give them enough time to scrutinize claims properly, potentially increasing fraud.
• The number of personal injury lawsuits in Michigan has increased significantly in recent years, with two-thirds of lawsuits involving drivers suing their providers over no-fault insurance claims.
• Michigan has high auto insurance requirements, with bodily injury liability minimums twice the national average, and the highest property damage liability minimum in the country.
• Detroit, in particular, has extremely high auto insurance rates due to the high cost of medical bills in the city.

Wayne State University's auto insurance benefits

Wayne State University offers a voluntary employee benefit program for auto and home insurance through Liberty Mutual Insurance, a Fortune 500 company. This exclusive partnership provides a range of benefits and discounts to help employees save time and money.

Firstly, Liberty Mutual offers competitive rates, which are further discounted for Wayne State University employees. The company also provides additional discounts based on individual factors such as college education, age, driving experience, and auto equipment like anti-lock brakes and airbags. With Liberty Mutual, you can benefit from rates guaranteed for 12 months, which is longer than the standard 6-month rate guarantee offered by some other companies.

The auto insurance plan also includes a range of convenient payment options, including payroll deduction, automatic checking account deduction, and direct billing. In the event of an accident or issue, you have access to round-the-clock claims service and 24-hour emergency roadside assistance.

There are also some unique benefits tailored to the university context. For example, if your vehicle is vandalized on school property or while being used for school-related events, your deductible will be waived. Similarly, if your vehicle is damaged in a collision while being driven for school business, the deductible may also be waived.

Additionally, the plan includes coverage of up to $2500 for personal education materials or school property that is stolen or damaged while in your vehicle. This comprehensive coverage ensures that you are protected in a variety of scenarios.

For Wayne State University alumni, there is also the Wayne State Alumni Insurance Program, which offers a range of health, life, and travel insurance options, including auto and home insurance discounts through the Alumni Insurance Program and Liberty Mutual Insurance. This program ensures that alumni can continue to access affordable and convenient insurance services even after graduation.

In summary, the auto insurance benefits provided by Wayne State University offer a range of advantages, from competitive rates and convenient payment options to unique waivers and coverage tailored to the university community. These benefits aim to provide peace of mind and financial protection to the university's employees and alumni.

Discounts for alumni

Auto insurance in Michigan is generally expensive, with the state ranking second in the nation for the highest car insurance rates. Detroit, where Wayne State University is located, has even higher insurance premiums, which are about 74% higher than the national average.

Wayne State University alumni can, however, take advantage of a few discounts and offers to mitigate these high costs. The Alumni Association partners with the Alumni Insurance Program and Liberty Mutual Insurance to offer a range of discounted services, including auto insurance. The Wayne State Alumni Insurance Program provides health, life, and travel insurance for alumni and their families, with various plans available to meet different needs. This includes renewable major medical, dental, and even pet health insurance.

To access these discounted rates, alumni can start an online quote or call Liberty Mutual directly. Additionally, the Wayne State University Alumni OneCard provides continued access to campus facilities, libraries, and parking, as well as discounts at various businesses in Detroit and the surrounding metropolitan area.

No-fault system

Michigan is one of the most expensive states in the US for car insurance, and Detroit is the most expensive city in the state. One of the main reasons for this is the state's no-fault system, which was introduced in 1972.

In a no-fault system, your insurance provider will cover accidents even if they were your fault. In Michigan, this means that your own car insurance will cover your medical bills and other out-of-pocket losses after a car accident, regardless of who caused the crash. This is different from most states, where you would typically recover your medical bills and wage loss from the at-fault driver's insurance.

The no-fault system in Michigan also allows you to choose a level of medical Personal Injury Protection (PIP) coverage associated with your auto policy. PIP coverage pays for more than just medical expenses, including things like attendant care, housing modifications, and lost wages. While you have the option to reduce this protection, the university recommends considering the risk to you and your family before doing so.

While the state had hoped that the transition to a no-fault system would lower auto insurance rates and the number of fraudulent claims, neither of these things happened. Instead, insurance providers have had to cover more costs, leading to increased premiums for drivers.

High medical costs in Detroit

Detroit has high medical costs, which is a contributing factor to the high cost of auto insurance in the city.

In 2017, Detroit medical providers charged as much as $5,300 for an MRI scan. In comparison, the same procedure would cost under $500 with Medicare, and less than $1,000 at other facilities. As MRI centers are frequently involved in no-fault auto insurance lawsuits, insurance providers take these costs into account, resulting in higher insurance rates in Detroit.

The high medical costs in Detroit are also reflected in the price of health insurance. Ambetter from Meridian offers the cheapest health insurance in Detroit, at $322 per month. In comparison, the average cost of health insurance in Michigan is $498 per month before discounts.

The high cost of medical care in Detroit is further exacerbated by the low minimum wage in Michigan, which is $9.65 per hour. This wage is higher than the federal minimum wage of $7.25, but it is still not enough to cover the cost of living, even for a single person. As a result, people with low incomes may struggle to afford the high medical costs in Detroit, and may pay higher rates for auto and health insurance.

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