So the car insurance companies just do whatever the hell they want to?

[leapfrog]

The Governor signed that law repealing the helmet law in a hurry , but it seems like he's sitting on his hands regarding different levels of the no fault insurance . What chaps my ass is the insurance industry sets the rate we pay every year into that [[bulging) catastrophic fund , and not the State . Too much trust going on with that . Michigan is on the top of the list with seat belt complience . I'd like to see the different levels , plus someone from the State [[auditor) look at the funds books [[incomming and outgoing money ) on a yearly basis to see if rate increases or if the greedy batsurds are using us as their private bank roll .

The State IS involved in establishing the MCCA rates for the year - its not simply mandated by the insurance companies.

[leapfrog]

Insurance companies are all hacks. Don't ever put me on a jury in a trial dealing with someone committing insurance fraud. Automatically Not Guilty in my eyes.

What an interesting insight into your morality, or lack thereof.

[rutlev]

Watch the morning news - every other commercial is either
Call Lee, Sam Bernstein, Mike somebody or other - all helping you get the biggest bang from the insurance co. They pay more in legal fees defending these type of claims, the claimant usually is ignorant of the no fault law or is totally convinced they deserve something. There is a lot of fraud, the need for unlimited medical for people who suffer irreparable damage is necessary, yet everyone who is injured feels that applies to them.

[Mikeg]

Excepts from "The High Costs of Michigan’s No-Fault Auto Insurance: Causes and Implications for Reform",

Prepared for the Michigan Chamber of Commerce by
Sharon Tennyson, Ph.D. Associate Professor Department of Policy Analysis and Management Cornell University
April 22, 2011

-------------------------------------------


......The primary cause of cost growth in Michigan auto no-fault is the accumulation of high-cost, long-term injury claims in the Michigan Catastrophic Claims Association [[MCCA). Catastrophic claims account for only 1 to 2 percent of no-fault claims, but for over 45 percent of claim costs. Michigan drivers pay premium surcharges of nearly $1 billion each year to support these claims.......



......Michigan no-fault provides generous life-long benefits to those who experience catastrophic automobile injuries, and accomplishes this by spreading the costs of these injuries across all drivers in the state. This assures that those injured receive adequate benefits, reduces delays and legal costs of obtaining benefits, and reduces worry and fear about experiencing such a loss. However, these features of no-fault also contain the seeds of spiraling cost growth: unlimited lifetime benefits burden the auto insurance system with the highest-cost cases, and socialized insurance costs diminish private incentives to hold down costs......

.....The rapid increase in payouts is due in part to medical cost inflation, but more importantly it is due to the accumulation of catastrophic losses. As noted above, claimants may receive benefits over a long span of years. [As of] June 2010, 25,216 claims had been reported to the MCCA since its inception [in 1978], and over one-half of these [[12,801) remained open in 2010......




.....Comparing the characteristics of automobile injury claims in Michigan to those in other states suggests that the number of brain injuries claimed in Michigan may be unusually high. Comparisons are made using the Insurance Research Council’s [[IRC) closed claim database from 2007, which contains a sample of 42,038 automobile injury claims from around the country [[of which 634 are from Michigan).30 In this database there are 10 claims for brain injuries in Michigan [[occurring in 1.6 percent of claims) but only 80 such injuries in all other states combined [[occurring in 0.2 percent of claims), which means that the relative rate of brain injuries reported in Michigan is eight times that in the rest of the country......

[Lowell]

It is almost criminal what the insurers get away with with their redlining.

Auto insurance should be considered a tax since it is required and fall under Headlee-like restrictions and legislative oversight, at the least. Their books should be opened and true costs analyzed.

They are killing the older impoverished cities as much as anything.

Their unrestricted policies are certain to be causing population undercount in Detroit and other disadvantaged cities as many who live there will adopt friend or family addresses in other lower rate areas depriving the CofD of tax, revenue sharing portions, legislative representation and more.

IMO the entire state should be put in in one rate district with rates modified only by driving records. If the insurers bitch the state should go into the business against them.

[Hermod]

It is almost criminal what the insurers get away with with their redlining.

Auto insurance should be considered a tax since it is required and fall under Headlee-like restrictions and legislative oversight, at the least. Their books should be opened and true costs analyzed.

They are killing the older impoverished cities as much as anything.

Their unrestricted policies are certain to be causing population undercount in Detroit and other disadvantaged cities as many who live there will adopt friend or family addresses in other lower rate areas depriving the CofD of tax, revenue sharing portions, legislative representation and more.

IMO the entire state should be put in in one rate district with rates modified only by driving records. If the insurers bitch the state should go into the business against them.

Or conversely, the population of the "redlined" area could become such careful, considerate, and safe drivers that their rates are lower than any other area's rates.

My rates for comprehensive [[fire and theft) insurance here in SE Florida are high because the local immigrants can have my car in a container on a ship and on the way to South America in a heartbeat. Should northern drivers have to suffer higher comprehensive rates bacause of that?

Maybe with homeowners insurance you would like to pay a share of my $22K a year in windstorm insurance.

[Cincinnati_Kid]

The Governor signed that law repealing the helmet law in a hurry , but it seems like he's sitting on his hands regarding different levels of the no fault insurance . What chaps my ass is the insurance industry sets the rate we pay every year into that [[bulging) catastrophic fund , and not the State . Too much trust going on with that . Michigan is on the top of the list with seat belt complience . I'd like to see the different levels , plus someone from the State [[auditor) look at the funds books [[incomming and outgoing money ) on a yearly basis to see if rate increases or if the greedy batsurds are using us as their private bank roll .

Well....he should be in a little hot water of his own for his "secret" non-profit that he used for un-ethical purposes like spending money from it for personal use, this coming from a man that preaches " Accountability." I've heard this song before...... "It doesn't matter what color you are, money is still green".

[fryar]

Insurance companies are all hacks. Don't ever put me on a jury in a trial dealing with someone committing insurance fraud. Automatically Not Guilty in my eyes.

Glad to see you're living up to your user name.

[elvis100]

Yep, auto insurance coverage can really cost you a pretty penny, but there ARE ways in which you could reduce premium costs. Have you considered shopping around for better rates? Consider clubbing your home and auto insurance policy or if you have more than 1 car, you could get a multi-car discount. Discounts such as defensive driver discount, discounts for installing anti-theft devices to your car etc, are some worth looking into.

[Zacha341]

Until that fraudulently insured person has an catastrophic accident involving you, your personal property or someone you care about...

Insurance companies are all hacks. Don't ever put me on a jury in a trial dealing with someone committing insurance fraud. Automatically Not Guilty in my eyes.

[Pam]

Mine went up too. I'm in the burbs with a 3 year old Focus. I emailed my agent and asked why, no response so far.

[BagAJellyDonuts]

I expect no pity but I own a collector car that sits the vast majority of the time. I haven't been ticketed or made a claim in nearly 30 years. I still insure each vehicle individually. I have no choice. Funny thing is, I only drive one car at a time. Why isn't insurance on the driver, not the car? Of course the kids and lousy drivers would see huge rate increases but that's not my problem.

[MizMotown]

Here we go again.... newer lease, no accidents/tickets... premium up $600... more then the car payment. don't need life insurance, renters insurance, blah blah blah.... this is the biggest scam ever to hit MI and they are laughing all the way to the bank. The only thing that's true about this scam is that we have a voted in legistation that feeds the insurance industry and does not care about the average joe.

[Zacha341]

But folks are still buying new cars I suppose....

My basic car insurance zoom up suddenly. I did not notice the jump as it had stayed the same for two years. Then realized I was struggling with payments. What many insurers will conveniently not tell you [[as it requires paperwork) is that they can sometimes 're-write' you for new policy which in some cases can lower the rate.

I opted out for that option cutting my premium by $350. Paying more on the front end of a policy can cut the rate too.

Needed to rent a car recently and found it interesting that agent said he believes no less than 60% of Detroiter's are not insured - ala Driving "Dirty" as it's called. Seems 'bout right seeing as how many hit and runs there are and or folks abandoning, limping away from their smashed cars at accident scene for not having 'paperwork' if the police arrive.

Or that other cheerful option: using someone else's address to apply for insurance. That often blows up wide when you have an accident.

I find the insurance/ car finance note impossible at my income. Don't know how others are managing it. Especially for luxury level cars.

[Zacha341]

Crazy for sure right! The kind of car purchased/ leased has an impact too.... I bet Chrysler 300's, Dodge Challengers, Chargers and the like are a fortune to insure!

Here we go again.... newer lease, no accidents/tickets... premium up $600... more then the car payment. don't need life insurance, renters insurance, blah blah blah.... this is the biggest scam ever to hit MI and they are laughing all the way to the bank. The only thing that's true about this scam is that we have a voted in legistation that feeds the insurance industry and does not care about the average joe.

[Zacha341]

Ask them to re-write your policy if that came lower your premium. And threaten to switch insurers and I bet he'll at least make up a reason. There's still a little wriggle room out there relative to pricing.

Sometimes it requires restarting a policy elsewhere, which can be a pain as you get used to your premium renewal dates, but to save money you sometimes have to do it.

Mine went up too. I'm in the burbs with a 3 year old Focus. I emailed my agent and asked why, no response so far.

[MizMotown]

The increase isn't with the medical portion or uninsured drivers in my case. That actually went down. The HUGE increase was the collision coverage. In three years I would PAY for the entire car with the insurance premium. I may as well crash it into a brick wall and make them pay for a new one. BUT my rates would triple... lol. It never stops until they can squeeze every penny they can out of you. Trump comes here and encourages auto jobs and workers and "buy American" but we have the highest insurance rates in the nation?! Anyway, I had to go with Progressive even though the reviews are not that great BUT than again they are not that great with Farm Bureau. Again, they give you the option of proving you have health coverage and take that into consideration. At least for the next six month I am only paying about $10 more vs. $80 more per month. The car is Kia Forte and the zip code is downriver. They don't care if you have never in your entire 48 years made an insurance claim they care how much additional insurance they can sell you.

Definitely my last new car purchase unless Michigan government makes some sense out of this because it sure is taking a looong time, considering every other state in this country has somehow worked it out to be more affordable.

http://www.michiganautolaw.com/blog/...ofault-reform/

[MizMotown]

http://www.mlive.com/news/index.ssf/...a_concern.html

[Hermod]

How about this as a solution for the legislature to pass as an insurance law for REAL No-fault:

Legal fees are limited to 5% of the total claim.
Medical fees are paid at Medicare rate schedules.
Chiropractor fees are disallowed.
Motorists and motorcyclists without insurance cannot claim against the other party's insurance regardless of fault.
You can buy how much personal medical and vehicular protection your need/want. If you didn't buy enough [[or didn't buy any at all), you are fucked!
Your insurance pays only for the medical costs of you and your pasengers and the damage to your car.

[softailrider]

It's not just automobile insurance, property insurance rates are absolutely criminal in the city. Republican governor, republican house, republican senate, republican state Supreme Court. I wasn't a fan of hers but, the only bad faith penalties against insurance companies were passed during the Grandholm administration. Michigan is one of the most consumer unfriendly states in the country when it comes to automobile or property insurance. Why are rates so high? Because the insurance companies can get away with it in Michigan. Of course, the fact that 30 percent of the city burned down over the last few decades doesn't help either.

All of the above opinions are based on 37.5 years and counting, working in the insurance industry on the consumer end.

[Bigdd]

Its not the no fault, its the MCCA and wreckless govt oversight. The agency that enforces insurance has no teeth. MCCA is going way up due to all of the jugheads riding around without helmets sustaining life like brain injuries. Very dumb move by the legislature to pass this.

Last I heard [[and I occasionally purchase MC insurance),.. motorcyclists are not eligible to benefit from MCCA,.. even though they pay the lions share of the premiums.

And as to the helmet law,.. government has no legal authority to mandate helmets. Government was never given the power [[by us) to protect us from ourselves,... so repealing this illegal law was the right thing to do. That said,.. I never ride without one,.. and people that do are flat out idiots. They are also required to have a high-limit MC insurance plan.

[Dan Wesson]

Upstate, middle of the mitt, PLPD on older Ford truck, older sub compact, refurbished jeep Wrangler, $1000 every 6 months. I pay upfront, no increase in premiums at this time. it's been the same for a couple of years now.

[313WX]

Another lesser problem I frequently bring up with the auto insurance debacle is that you also have a lot of folks who are "bunking" in downtown and midtown but are still claiming residence at a suburban address. This costs Detroit political leverage [[see economies of scale) and federal dollars if in fact these areas are growing at the pace that many of the boosters on here suggest.

[313WX]

Trump comes here and encourages auto jobs and workers and "buy American" but we have the highest insurance rates in the nation?!

I'm not sure if you're being facetious, but what does Trump's "buy american" campaign have to do with auto insurance?

In my opinion, if you're going to be screwed six ways to Sunday by auto insurance, you might as well at least buy your vehicle from a company that's based in America and/or hires a large share of Metro Detroiters.

[Zacha341]

^^^ I agree. The only edge beyond that is to by used and not carry a finance note AND the big insurance, but that has nothing to do with what kind of car your purchase!