House Passes Insurance Bill, Senate Expected to Follow

[Sandhouse]

I've read the bill a couple times now, and the Senate Fiscal Agency analysis, and much of the press coverage, and I have these tentative observations:

There is no protection against redlining of Detroit neighborhoods. But,

The high rates in Detroit are caused by the prevalence of ambulance-chasing pain clinics, medical-transportation providers, and tort lawyers. Not by crash or theft risk. So when the MCCA payouts are controlled by the fee schedule and people opting out, the fraudsters' access to the unlimited fund should be curtailed.

This will allow lower MCCA payouts. The mandatory audit should detect this and require refunds, even though no reduction is mandated in the MCCA charge of $222/year. The operative word is "should."

Savings should be available from two lines in your premium: the $222 for MCCA, and whatever you're paying for PIP. My rough guess is $400/year statewide average, maybe much more in Detroit, but only if you opt out of unlimited coverage. But I don't have much confidence in my guess.

$250,000 per injured person liability coverage is now mandatory. If you're carrying less, you will pay more now.

A lot will depend on how aggressive DFIS is about policing the rates. If they insist on geographic fairness, Detroit rates could fall, at the expense of slight increases in the suburbs and elsewhere. Likewise, women's rates could fall at the expense of men's. But who knows?

I don't think uninsured drivers are going to go away under this. Whoever hits you will still probably be an uninsured flake with no assets to sue for. This is especially true for what I call innocent bystanders: pedestrians and bicyclists. I think their coverage from the Placement Facility for uninsured drivers is limited to $250,000 in the new bill, although the figure of $2,000,000 is in the bill, too. This part I can't figure out. Does anyone know?

[Johnnny5]

The fearmongers that come out in support our current system want us to pretend that there aren't 49 other states with lower auto insurance rates. Somehow all these other states have found ways to offer lower rates without some epic healthcare disaster. The sky isn't falling in Colorado where the average auto policy is $1000 per year less than our $2700 per year, or in Ohio [[Where they pay HALF of what we do), or in Wisconsin where they pay just 35% of what the average Michigander does!

It's the same argument being used to keep our ridiculously overpriced health care system afloat, and I'm glad to be finally be seeing cracks in both of them!

[Cincinnati_Kid]

The fearmongers that come out in support our current system want us to pretend that there aren't 49 other states with lower auto insurance rates. Somehow all these other states have found ways to offer lower rates without some epic healthcare disaster. The sky isn't falling in Colorado where the average auto policy is $1000 per year less than our $2700 per year, or in Ohio [[Where they pay HALF of what we do), or in Wisconsin where they pay just 35% of what the average Michigander does!

It's the same argument being used to keep our ridiculously overpriced health care system afloat, and I'm glad to be finally be seeing cracks in both of them!

I agree. The truth ain't never lied.

[LongGone06]

The fearmongers that come out in support our current system want us to pretend that there aren't 49 other states with lower auto insurance rates. Somehow all these other states have found ways to offer lower rates without some epic healthcare disaster. The sky isn't falling in Colorado where the average auto policy is $1000 per year less than our $2700 per year, or in Ohio [[Where they pay HALF of what we do), or in Wisconsin where they pay just 35% of what the average Michigander does!

It's the same argument being used to keep our ridiculously overpriced health care system afloat, and I'm glad to be finally be seeing cracks in both of them!

Are the coverages comparable in those states? I don't know the answer to that question; but, citing lower rates in other states is only relevant if the coverages are the same or substantially similar. I don't think that's fearmongering.

[Honky Tonk]

Actually, I'm very concerned about this insurance bill since you're forced to choose less coverage for a lower rate. Like much of the decisions made in Lansing, I don't feel like this is going to solve our problems.
I also know bitching about it on a public forum will not fix the problem either.

How about another tax increase? Will that fix it?

[Honky Tonk]

The fearmongers that come out in support our current system want us to pretend that there aren't 49 other states with lower auto insurance rates. Somehow all these other states have found ways to offer lower rates without some epic healthcare disaster. The sky isn't falling in Colorado where the average auto policy is $1000 per year less than our $2700 per year, or in Ohio [[Where they pay HALF of what we do), or in Wisconsin where they pay just 35% of what the average Michigander does!

It's the same argument being used to keep our ridiculously overpriced health care system afloat, and I'm glad to be finally be seeing cracks in both of them!

Good. Gretchen gave you what you wanted. Lower rates @ less coverage. Let's see how that works out in the next few years.

[O3H]

""" In lieu of some of the accident stories posted,
I'd reconsider my position."""

NOPE - I skydive, bungee jump, mountain climb, kayak, do martial arts, etc, etc., etc. and kiss the Insurance Man a huge F' YOU because life is for living, exploring and experiencing. By attacking risk, we evolve , we discover LIFE.

Insurance is the biggest scam on the planet.
Blue Cross Blue Shield is a non-profit almost $27 billion in annual revenue.
Sure they have no stockholders and pay taxes, but health care is a EVIL MONSTER.

[Honky Tonk]

""" In lieu of some of the accident stories posted,
I'd reconsider my position."""

NOPE - I skydive, bungee jump, mountain climb, kayak, do martial arts, etc, etc., etc. and kiss the Insurance Man a huge F' YOU because life is for living, exploring and experiencing. By attacking risk, we evolve , we discover LIFE.

Insurance is the biggest scam on the planet.
Blue Cross Blue Shield is a non-profit almost $27 billion in annual revenue.
Sure they have no stockholders and pay taxes, but health care is a EVIL MONSTER.

Do what you want. Unlike other countries, this is a free one.

[Carolyn.F]

How about another tax increase? Will that fix it?

Good Lord, no! I'm with LongGone06 when he asks about comparable coverages in other states. Look at what other states are doing and formulate the best plan. Keep the lobbyists out so they don't ruin it with corporate greed.

But again, my opinion on this board isn't going to influence policymakers.

[ABetterDetroit]

It is frustrating how much the citizens of Michigan enjoy getting screwed because we sure have been for a long time.

It is very simple and not hard to understand.

The Democrats in this state are in love with the lawyers and the Michigan Republicans are on a constant honeymoon with the insurance companies and... Voila! We get to pay with our money to keep both of their sweethearts happy with expensive cribs, vacation getaways and high end jewelry. That happens by paying the highest auto insurance rates in the fucking country. Neither one of them has given a damn about the cost for the citizens in this state or the damage that does. All they care about is who is throwing the fund raisers for the campaigns.

Until we demand better treatment it will never happen. People with brains left in their heads that have not been washed and do not gobble down everything fed to them just because it is their very own ‘Red’ team or their one and only ‘Blue’ team better wake the fuck up because they both have had their hands in our pockets and have forever around here.

Lets cut to the chase. Lansing only did something this time around because Dan Gilbert was so fed up with their apathy and greed he threatened to finance a referendum on the issue. Without him stepping in, it would have business as usual and nothing would have changed.

[Honky Tonk]

It is frustrating how much the citizens of Michigan enjoy getting screwed because we sure have been for a long time.

It is very simple and not hard to understand.

The Democrats in this state are in love with the lawyers and the Michigan Republicans are on a constant honeymoon with the insurance companies and... Voila! We get to pay with our money to keep both of their sweethearts happy with expensive cribs, vacation getaways and high end jewelry. That happens by paying the highest auto insurance rates in the fucking country. Neither one of them has given a damn about the cost for the citizens in this state or the damage that does. All they care about is who is throwing the fund raisers for the campaigns.

Until we demand better treatment it will never happen. People with brains left in their heads that have not been washed and do not gobble down everything fed to them just because it is their very own ‘Red’ team or their one and only ‘Blue’ team better wake the fuck up because they both have had their hands in our pockets and have forever around here.

Lets cut to the chase. Lansing only did something this time around because Dan Gilbert was so fed up with their apathy and greed he threatened to finance a referendum on the issue. Without him stepping in, it would have business as usual and nothing would have changed.

Tsk, tsk, tsk, ABD, SUCH language! Please, tell me more about Gilbert and this referendum. This is the first I've heard about it.

[ABetterDetroit]

Tsk, tsk, tsk, ABD, SUCH language! Please, tell me more about Gilbert and this referendum. This is the first I've heard about it.

https://www.freep.com/story/news/loc...ot/3739092002/



https://www.detroitnews.com/story/op...er/3765413002/

[Honky Tonk]

https://www.freep.com/story/news/loc...ot/3739092002/



https://www.detroitnews.com/story/op...er/3765413002/

Thanx ABD. Interesting reads. I am in awe of Dan Gilbert. I know his interests lie in developing markets, but he's not afraid to step up to the plate and go to bat for the little guy. As far as the insurance plans go, I don't think either plan does enough to address the real issues, what criteria is being used to determine rates. I read and knew about credit scores being used, but I still don't understand what the coorelation is to someone's driving record. I also read repairing a vehicle, rather than replacing it, can also initiate rate increases. As far as saving $150 a year by choosing 0 PIP, one can blow that amount ordering fried baloney appetizers. I think either plan is reform but not real reform. One thing's for sure, neither party seems very keen on getting the people's input on the subject.

[Smirnoff]

Trying to locate the article.....Insurance Alliance actually saying with the MI legislation just passed, rates are actually going to increase!!!

Makes sense: If rates are going to decrease, shouldn't AAA or State Farm or Farmers be the communicator, instead of criminals [[politicians)???

Carry on.

[Meddle]

^^ Of course they will.

Everybody hates government meddling, but prescribed rates may be the answer. Take rate setting out of the hands of the insurance companies. Base the rates on real numbers, not perceived risks on where some live.

Put real penalties on address fakers. Suspend their licenses for starters; 90 days minimum at first. It's not that hard to find them.

Stop issuing license plates to high risk vehicles that put others in harm's way.

Forfeit vehicles of those caught street racing and 5 year suspension of their licenses.

Take the officers off tourist crossing details at the Ill Itch Palaces and put them to work shutting down chop shops.

Establish authorized supply chains for parts to collision shops at prescribed prices. No more buying a fender or airbag from the guy down by the corner.

I got lots more no one would like.

[Zacha341]

Bungee jump? No, thanks. That's too much like lynching IMO.......

...NOPE - I skydive, bungee jump, mountain climb, kayak, do martial arts, etc, etc., etc. and kiss the Insurance Man a huge F' YOU because life is for living, exploring and experiencing. By attacking risk, we evolve , we discover LIFE...

[Zacha341]

Hah. I hear that!

Health Insurance/Care! -- as like Attorney's:

Hated and deeply despised until the day you NEED EITHER!! ----

...Insurance is the biggest scam on the planet.
Blue Cross Blue Shield is a non-profit almost $27 billion in annual revenue.
Sure they have no stockholders and pay taxes, but health care is a EVIL MONSTER.

[Honky Tonk]

Bungee jump? No, thanks. That's too much like lynching IMO.......

LOL! Nice...

[renf]

Can anyone confirm that the reform vehicle insurance bill still permits
redlining using data about a purchaser's reported place of residence?
Thank you.