A recent study conducted by the Property Casualty Insurers Association of America and the Insurance Federation of Minnesota addressed the need for reform of the state's no-fault automobile insurance system.
The study reviewed Minnesota's no-fault law's effect on insurance claim patterns, comparing the state's average price for auto insurance with surrounding states as well as nationwide. According to the findings, Minnesota's full coverage auto insurance premiums are 19th highest in the country, while several other neighboring states rank among the least expensive.
"Based on our study we found that the Minnesota no-fault system is burdened by expensive health-care coverage, higher-than-average amounts of medical-care utilization, treatments and provider costs, an increase in the rate of filing liability claims, and greater attorney involvement," said Michael Harrold, PCI vice president. "These factors result in the cost of auto insurance being out of line with many other Midwestern states."
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