NU Economics Professor Michael Makovi Talks Michigan Auto Insurance

As long as there is free competition among insurance companies, it is likely that every person will receive the fairest insurance premium that is possible, given the imperfect state of human knowledge. Each insurance company will have a financial incentive to estimate statistical risk as best it can so that it can offer every customer the lowest possible premium, and therefore attract customers away from their competition.

Read Professor Makovi’s perspective at WalletHub