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According to an article in the Detroit News, Michigan insurers
claim they're being eaten alive by ballooning expenses to repair
windshields, shocks and the like. AAA, Michigan largest insurer,
says the average windshield damage claim has risen 67% in the last
ten years ($375 vs. $225).
The legislation
they say, simply recognizes that costs for auto body and
mechanical parts keep rising along with the number of claims filed
-- meaning customers end up paying more for the coverage.
State Farm and AAA
Michigan, the bill's two leading supporters, say they don't have
immediate plans to increase their minimum deductibles if the
legislation passes. Opponents of the proposal, however, say such
increases are inevitable once insurers get the go-ahead.
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