Mileage Based Auto Insurance for Michigan Homeowners : Michigan regulators currently implement an auto insurance that will be based on a pay-as-you-drive policy. Ken Ross, Michigan’s commissioner of the Office of Financial and Insurance Regulation (OFIR), confirmed that this is currently being implemented in Detroit, Michigan. The bulletin regarding this new regulation was released last week and it is released to serve as a reminder for auto insurance coverage providers.
This new regulation is also in line with the mileage based insurance coverage also becoming popular among different providers and states. The implementation of it provides advantages both to the state and also the car drivers. It promotes less traffic, lesser pollution and also lower premium rates and savings on the car owners’ part. Currently, other states like New York and Massachusetts are also seeing if the use of mileage based auto insurance will also be possible on their states.
The regulation in Michigan will include having mileage as the only basis for charging auto insurance. Mileage can also be evaluated on an annual, weekly, or monthly basis. The lesser the average miles will also mean greater discounts for the car owner. This will also mean having the car owners become watchful on their average miles. Being a new regulation, currently OFIR confirmed that there are no auto insurance providers having this kind of service.
