Detroit/Michigan auto insurance rates

[jerrytimes]

Seems like a few months back there was a lot of talk about changing the laws in regard to Michigan's insane auto insurance rates. Whatever happened to this, especially the need to eliminate the MCCA rate..... which just went UP 13% this year.

[One Shot]

Scum of the earth lawyers that feast off unlimited benefits and all the people with imagined injuries. Throw in all the pot head drivers to cause more accidents now and Michigan is an insurance/lawyers paradise!

[O3H]

Follow the money - always a great way to find the scumbags

[swingline]

Seems like a few months back there was a lot of talk about changing the laws in regard to Michigan's insane auto insurance rates. Whatever happened to this, especially the need to eliminate the MCCA rate..... which just went UP 13% this year.

For Detroiters it's not the MCCA rate, it's the PIP cost - which for folks with poor credit ratings can approach $2000/year. That's what results when your only-in-Michigan no-fault system incentivizes poor folks to hire a lawyer and transform every little fender bender into a $100k 1st party claim.

[Bradley]

Stop the hit and run. Russia uses the #dashcam

[Cincinnati_Kid]

Scum of the earth lawyers that feast off unlimited benefits and all the people with imagined injuries. Throw in all the pot head drivers to cause more accidents now and Michigan is an insurance/lawyers paradise!

Don't leave out the idiots that text and drive.

[Zacha341]

Texting and stoned and drunk distracted too! With justification to do so. Lovely! I had a man almost side-swipe me texting in-his-own-world.

When I blew my horn to stop him, he followed me for a while cursing out of his window!! Good times!

[mwilbert]

Seems like a few months back there was a lot of talk about changing the laws in regard to Michigan's insane auto insurance rates. Whatever happened to this, especially the need to eliminate the MCCA rate..... which just went UP 13% this year.

Here's the story:

https://www.freep.com/story/news/pol...ves/825590001/

[Ray1936]

Stop the hit and run. Russia uses the #dashcam

They also drive like idiots. Go to YouTube and search for Russian car crashes. The only thing we have to fear from the Russians is if they start driving over here. [[On the other hand, we could send Californians to Russia to equal it out........)

[jerrytimes]

They also drive like idiots. Go to YouTube and search for Russian car crashes. The only thing we have to fear from the Russians is if they start driving over here. [[On the other hand, we could send Californians to Russia to equal it out........)

It's very entertaining.

Anyway, this just infuriates me. I'm my personal situation, the MCCA rates are $422 of my car insurance premium. Total bill is $2500 for the year, from what I've heard what I pay isn't all that bad which blows my mind. MCCA is 20% of my insurance bill. Since everyone in the USA is required by the ACA to carry health insurance, then why does this still exist???

[Zacha341]

The insurance rates are out of control. I have never had a new can, only older models. Can't afford... the way these hit-and-runs are escalating it's apparent that many are skipping out on insurance all together.

[msamslex]

Due to an illness & side affects from surgery I had a couple years ago, I’m no longer allowed to drive. I can’t say I miss paying for a car & the high insurance rates that go along with it, which I did for many years.

[EastsideAl]

About a month ago on Jefferson in the snow I had someone attempt to drive into me on purpose in what I assume must've been an insurance/injury scam attempt. She actually tried twice to get me to run into her car!

[Shai_Hulud]

Dead horse, but it seems from there is an advertising blitz for similiar proposals to failed one in this thread. I'm sure everyone has seen the billboards.

http://www.midriverschoice.com/
http://weneeddriverschoice.com/

Apparently it's a non starter because it all it does is offer people the option to opt out of unlimited coverage for a very low cap and no guarantee of savings.

https://www.michiganautolaw.com/blog...or-mi-drivers/
https://www.detroitnews.com/story/ne...tes/673484002/

Having established that the above is a bad deal and does not address the real problem are we stuck at square one?

Both articles suggest legislators are "working on" the issue but considering the enormity of economic drain, the fact that however produced actual reform could write their own ticket in the state and that every other state does better, that does not inspire hope.

[O3H]

Insurance companies actually BUY politicans via untraceable political contributions, so I have little hope that viable candidates will do anything.
When was the last time a - ""political promise"" - actually came true ?

[ABetterDetroit]

The Mayor hasn’t given up the fight, rightfully so.

Why is it when something is broken or failed in this state fixing it is near impossible?

In 49 other states the residents pay substantially less for auto insurance.

Shouldn’t we demand that the legislators we pay in Lansing do something about it? They could at the very least aspire to be in the middle of the fucking pack for a change instead of just chugging along letting us pay more than anywhere else in the whole country and having ‘Michigan be the worst for auto insurance’

It’s like they get paid to be obtuse to what the real problems are around here.

https://www.freep.com/story/money/20...an/1071905002/

[Honky Tonk]

The Mayor hasn’t given up the fight, rightfully so.

Why is it when something is broken or failed in this state fixing it is near impossible?

In 49 other states the residents pay substantially less for auto insurance.

Shouldn’t we demand that the legislators we pay in Lansing do something about it? They could at the very least aspire to be in the middle of the fucking pack for a change instead of just chugging along letting us pay more than anywhere else in the whole country and having ‘Michigan be the worst for auto insurance’

It’s like they get paid to be obtuse to what the real problems are around here.

https://www.freep.com/story/money/20...an/1071905002/

These three paragraphs bother me:

""CPAN is deeply concerned about the lawsuit that aims to make sweeping and potentially devastating changes to MichiganÂ’s auto no-fault law, a move that will allow insurance companies to sell worse plans with no guaranteed reduction in rates," coalition President John Cornack said.
Attorney George Sinas, a no-fault expert who teaches auto insurance at Michigan State University College of Law and is general counsel for CPAN, said a major flaw in Duggan's lawsuit is its disregard of the role insurance companies have in setting rates, using factors such as credit scores, professions and whether or not someone has a college degree.
“The mayor’s lawsuit doesn’t in any way attack the real problem here, which is a rate-making structure that allows rules to be utilized by the insurance industry that are inherently unfair and discriminatory," Sinas said. "The mayor doesn’t say anything about that, and by not saying anything, he implicitly blesses the practices of the insurers.”


I have to agree Sinas, that insurers are using a discriminatory method for calculating rates, that have nothing to do with someone's driving record. Reading this, I can think of examples of people with degrees, one PHD., that I get nervous with when they're behind the wheel. If I miss an appliance payment, that somehow warrants raising my auto insurance rates? Monty Python's "Is She A Witch?" logic scene comes to mind. The last issue is IF the rates in Detroit DO get lowered because of the suite, the policies written have to contain the same coverage, for the same amount of money, other state get, and not some watered down insuramce plan. I'm glad someone's doing something. Is there any way to get ones name on the suit? I think it would be great if a large number of people got on it to show support.

[O3H]

Keep the insurance company lobby from donating Millions to politicians

[DetroiterOnTheWestCoast]

Keep the insurance company lobby from donating Millions to politicians

“Corporations are people, my friend”

[EastsideAl]

This is how absurd the situation is here, when I moved back here from NYC I kept my car registered under my NYC address for as long as I could to avoid Detroit car insurance rates. Let that sink in for a moment.

When I could no longer keep that up, and I registered my car here again, my insurance on a decade-old Focus went from $1,100 a year to over $2,600 a year. Mind you, that's with no accidents on my record, 1 moving violation, and a clean credit record. Oh, and I'm also a college graduate [[what that has to do with driving, I have no clue).

New York is a no fault state too, and one where people constantly complain about the high auto insurance rates, but it has nothing on the Detroit insanity. As the Free Press story about this situation May 2017 made clear, the big difference is that, unlike every other state, Michigan does not cap benefits from auto accidents. This creates obvious incentives for fraud and abuse, and a whole little industry has arisen to take advantage of this, but the state also does little or nothing to police the system or stop even the most obvious schemes.

The ideas currently proposed that will supposedly lower rates are indeed ill-conceived and risky, and do not address the real problem. Cap benefits statewide, like every other state does, and much of this problem will go away [[especially if we also aggressively police fraud, as other states do). Then we can deal with absurdities like the use of credit, education, zip codes, etc. for determining rates rather than driving records. But, of course, the medical, trial lawyer, and insurance lobbies all stand in the way of this one, obviously sensible, reform.

[One Shot]

Thank our TV lawyers that pander to the people with every kind of boo boo imaginable.

[Honky Tonk]

Thank our TV lawyers that pander to the people with every kind of boo boo imaginable.

___________

[O3H]

Even if insurance drops the monthly costs - they'll make it up other ways.
Some states have the 3 speeding tickets in X time, loose your license.

Can't wait to see how the THC saliva tests affects impaired drivers
.

[Bigdd]

Then we can deal with absurdities like the use of credit, education, zip codes, etc. for determining rates rather than driving records.

Insurance costs reflect more than just accidents CAUSED by the insured. It also covers your car getting stolen, vandalized, being hit by others, personal liability, injuries you might sustain while hit at a stop light, etc, etc, etc.

People who are poorer and have terrible credit are more likely to file a lawsuit [[which will costs the ins co a lot of money, even if they win). Poorer people also tend to live in areas with higher car theft, and are less likely to park their car at night in a locked garage. They usually also live in an area with longer response times from the police, etc, etc. All of that affects the chance and size of pay-outs.

Insurance companies have tables that tell them the added cost of all these factors.

IF it were hyper-lucrative to insure in those areas [[because of the huge premiums being charged),.. every company would be trying to corner the market. They'd be cutting their prices a little here and there to try to gain market share. But the reality is,.. it costs ins companies A LOT to write policies in places like Detroit.

I meet a couple people a week in the hood that have a lawsuit going on. Hoping to win the insurance lotto.

[O3H]

Time to break that cycle of a litigious society awaiting a big pay day.
It's a vehicle for transportation, not a status symbol, not a penis enlarger.
Take the money OUT of the repairs, make vehicle usable once again, period.