Some 2 million drivers in the country may see a higher rate ofDrivers in Michigan is likely to see high auto insurance this year. About 2 million people could see a $40-a-year raise, unless a tax credit that benefits the insurer are repealed. Gov. Rick Snyder has repealing the tax credit was proposed as part of the proposed budget in 2016-2017. Doing so will ensure more funding for the State's General Fund and be able to ensure that drivers do not have to pay higher prices for their insurance.Insurance companies are to be repaid including the damages caused by uninsured driversBefore 2012, the insurer receives money from the State's General Fund. This amount is meant to reimburse insurers when they were forced to cover the damages caused by uninsured drivers. Insurance placement facility of Michigan Auto has managed the funding for the insurer and those who pay into the Fund were eligible for a tax credit that is not available in the past. Repealing the tax credit gained support from the legislators in the State, but it can have a number of consequences for the consumer.Repealing the tax credits could lead to higher premiums for driversauto car insurance go to share uber lyftAccording to Bev Barney, Executive Director of the Michigan Association of insurance agents, consumers can end up paying higher premiums if the tax credit is repealed. The insurance company will continue to pay more for the damages caused by uninsured drivers, and this could lead some companies to increase premiums to overcome financial losses. Even so, there are some legislators believe the tax credit represents a problem that was created by the legislature in the State's past. Whether the tax credit be repealed or not, consumers are likely to pay more for insurance.Consumers are encouraged to shop around for the least expensive coverageConsumers concerned about facing higher premiums are being encouraged to shop around for a new policy. In some cases, the driver can find less expensive coverage premium is lower than what they pay now. The premium change constantly due to various problems, however, and even those who found less expensive policies could see their premiums to grow in the years to come.
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