Will Michigan Car Insurance Rates Finally Go Down?

Let’s face it…car insurance is a necessary evil. It is one of those things that nobody really wants to pay for, but you simply have to have it. Your Michigan car insurance policy is something you won’t truly appreciate until you need to file a claim.

Michigan has some of the highest auto insurance rates in the nation and some state leaders are looking to change that.

State leaders are looking to make some big changes to your car insurance.  Michigan is a “no fault” state which brings some benefits but also high costs.
Right now the average driver in Michigan pays around $1800 per year.  But if state leaders have their way, that number could come down.

A new bill would cap benefits for claims cases that involve people who don’t pay into the system.  That limit would be set at $400,000.
The bill would also try and decrease fraud.  State leaders want to create an authority that would look into fraudulent claims.

While some state reps would like to see change there are certainly some opponents to the proposed legislation.

But opponents of the bill say the new legislation won’t work.

“Unfortunately this legislation has nothing in there that would guarantee a rate decrease, and actually some of the quotes I’ve seen from those who are supporting it say it’s not about a decrease to them so I really think we need to come back and get everyone to the table and not a last minute lame duck push to do something hastily,” says Josh Hovey an opponent of the bill.

Despite that opposition, the bill gained some momentum Tuesday when the Michigan Health and Hospital Association gave their support.  Right now it’s unclear when the new legislation will be up for vote.

Source: Read more… | WZZM13.com

If you are looking for our auto insurance to be reformed I wouldn’t get too excited. We have been down this road many times before without accomplishing anything. Who knows maybe this time our state leaders will actually get the job done. They are proposing some changes to our current system that many believe are long overdue.

Draft legislation reviewed by The Detroit News would cap an insurer’s responsibility to pay for family attendant care of an injured relative at 56 hours per week and implement a $400,000 benefit cap for uninsured drivers, pedestrians, bicyclists or other individuals hurt in an auto crash and covered through the state’s “unassigned claims” plan.

Republican leaders have long touted potential no-fault reforms as a way to address high auto insurance rates in Michigan, but scaling back guaranteed protections for catastrophically injured crash survivors has proven politically challenging and critics have questioned cost savings assumptions.

Senate Majority Leader Arlan Meekhof, R-West Olive, is pushing for action this week and “would champion getting some progress on auto no-fault, even if it’s not the entire reform he was hoping for,” said spokeswoman Amber McCann. “His goal is to try to rein in the rising cost that is becoming burdensome for consumers who see increased insurance bills year after year.”

The proposal appeared to gain momentum Tuesday with newfound support from the Michigan Health and Hospital Association. But the larger Coalition Protecting Auto No-Fault was quick to criticize the developing plan, calling it neither balanced nor responsible.

“By capping benefits for those covered by the Assigned Claims Plan, lawmakers would be hurting the most vulnerable auto accident survivors in this state — children and seniors. I just can’t see how anyone would think that is a good idea,” spokesman Josh Hovey said in a statement.

House Democrats have fought similar proposals and remain steadfastly opposed to no-fault changes, spokeswoman Katie Carey said Tuesday.

“We have to do something to bring down the cost of insurance in the state, and hopefully this will do it,” he said. “There’s no guarantees, but it’s a step in the right direction.”

Source: No-fault auto plan revised, revived in lame duck

Regardless of where you stand on this issue, something needs to be done to bring down Michigan’s car insurance rates. We pay more than the rest of the nation for auto insurance and it is simply unaffordable for many residents. These high rates have led to many drivers choosing to forego auto insurance altogether putting us all at greater risk. What are your thoughts?

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