Claims News Service, March 3, 9:11 a.m. EST — Drivers in Minnesota pay more for insurance than drivers in most neighboring states due to a no-fault automobile insurance system that encourages inflated billing, over-treatment, and allows far too many claims to go to court, according to a new study conducted by the Property Casualty Insurers Association of America (PCI) and the Insurance Federation of Minnesota (IFM).

The study was presented earlier this week by the IFM to the Joint Senate Commerce Committee and House Commerce and Financial Institutions Committee during an informational/policy hearing. The committee, which met prior to the beginning of the legislation session, took no action on the issue.

The study reviews the performance of Minnesota's no-fault law in the context of its effect on insurance claiming patterns. The analysis compares the average price for auto insurance in this state with the remaining Upper Midwest region and countrywide, and contrasts the injury loss experience incurred by drivers in Minnesota against those of the nation, surrounding states and other no-fault states.

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