"

Time and again, studies show that some of the most expensive average auto insurance policies in the country are mostly located in Michigan, where a number of factors - including the state's personal injury protection laws - combine to drive up costs significantly. However, it seems drivers there recently got some good news, as the cost of one aspect of their coverage is about to drop nearly 20 percent. It may therefore be wise for insurance agents operating in the state to start letting their clients know about the positive change, as well as provide some other information about their coverage.

The Michigan Catastrophic Claims Association recently announced that the amount of money it charges drivers in the state for catastrophic injury protection will drop to $150 per year from the previous $186, according to a report from the Detroit Free Press. That change will go into effect on July 1. Michigan is currently the only state in the country that requires drivers to buy unlimited medical benefits with their auto insurance, which is just another reason the premiums there tend to be so high.

What do the new costs cover?
Out of that $150, the vast majority will go toward covering the cost of expected new claims being made throughout the year, the report said. Meanwhile, $4.50 will be put toward a current deficit of $292 million that's still outstanding from existing claims, while another 40 cents will cover administrative costs. The fund paid out $1 billion in claims last year alone, and that's even including the fact that the policies associated with it only kick in once the value of the claim climbs north of $545,000. Meanwhile, other aspects of auto insurance costs in the state will still remain extremely high in comparison with national norms, but even this small relief could be a boon to many residents.

The more insurance agents can do to demystify consumers' auto insurance policies - such as explain what they are and are not covered for, and why their policies cost what they do - the better off all involved are likely to be. Agents may be able to see their customer satisfaction ratings and client retention rates increase as they build more positive relationships, while drivers will be able to feel better about their chances for understanding and properly navigating the sometimes murky waters of auto insurance coverage.

"