auto insurance

 


Today on Stateside, we hear from two men who say they were sexually assaulted after being placed in adult prisons as teenagers. A class-action lawsuit filed on behalf of hundreds of other men with similar claims  is finally going to court after years of state opposition. Plus, if you're sick of robocalls (we sure are), we've got some bad news: They aren't stopping anytime soon. 

 


Today on Stateside, Governor Whitmer orders an audit of the Michigan Catastrophic Claims Association after it hikes the yearly fee on auto insurance policies by 15 percent. Plus, we explore two important pieces of our state's African-American history housed at the Library of Michigan.

Why does Michigan have some of the highest auto insurance premiums in the nation?

Crain’s Detroit Business and Bridge Magazine dug into the heart of the question that affects every single driver in our state by analyzing insurance data over a 14 year span. They found that repairing people costs a whole lot more than repairing cars. Most of your auto insurance now goes to PIP, or Personal Injury Protection.

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Legislation to nix Driver Responsibility Fees is moving through the state Legislature.

The fees require drivers to pay to get their driver’s license back after getting too many points on their license or committing certain driving offenses.

There’s already a law to phase out the fees completely in 2019. But lawmakers say that’s not soon enough. They want the fee to be gone by October of next year. And they want people that haven’t paid their fees to be forgiven.

The state legislature held a marathon committee hearing on a bill to overhaul Michigan’s auto insurance law Tuesday. The committee heard ideas for potential changes to the bill. 

One idea is to prevent insurance companies from using credit scores to influence rates.

An unlikely alliance has formed to overhaul Michigan’s auto no-fault system. Speaker of the House Tom Leonard (R-DeWitt) and Detroit’s mayor Mike Duggan met Tuesday. They say the goal is to bring rate relief to all Michigan drivers.

There’s no word yet on what the plan says about people with catastrophic injuries from car crashes. Right now Michigan is the only state in the US that provides unlimited medical benefits for people in those accidents.

Detroiters pay some of the highest auto insurance rates of anyone in the country. A significant share of the city’s residents do not make enough to pay for continuous insurance coverage. That presents problems when it comes time to get a vehicle registered.

As a result, many have turned to a legal workaround called 7-day auto insurance. Now, that loophole may be closing. 

 

Are women worse drivers than men? Michigan auto insurance companies appear to think so.

In most states, there’s not much of a difference between auto insurance rates for men and women. But in Michigan, there’s a difference of about 4.03% between them, with men paying $2,087 and women paying $2,175.

Automobile insurance rates are expensive in Michigan. The state regularly places in the top ten for highest rates in the country.

But Republicans in Lansing say they have an answer that could lead to lower premiums. The state Senate passed a bill last week that would overhaul Michigan's no-fault insurance system by targeting the way insurers deal with healthcare providers, among other changes.

Rick Pluta, the capitol bureau chief of the Michigan Public Radio Network, explains how the plan would work:


At the state Capitol, House Speaker Jase Bolger (R-Marshall) says he still hopes to get an overhaul of Michigan’s no-fault auto insurance law through the Legislature this year.  He rolled out a new plan to end Michigan’s unlimited lifetime medical benefits coupled with the promise of a rate reduction.

“We do seek to ensure more drivers, make our auto insurance more affordable,” said Bolger at a news conference to announce the proposal.

The debate over changing Michigan’s no-fault auto insurance system is underway in Lansing. Governor Rick Snyder Thursday introduced his plan to end unlimited lifetime medical benefits for people severely injured in auto accidents.

The governor’s plan would cap those benefits at a million dollars. Snyder says insurance rates are unacceptably high under the current system. 

“We’re significantly higher than other states in the Midwest, we’re the eighth highest in the country, and that’s not a good situation,” he says. “We need to do something about it in terms of our costs.”

Timo Newton Syms/Flickr

Lawmakers are getting ready to consider changes to the state’s no-fault auto insurance law. At the same time, a court battle over access to information about a fund drivers pay into continues.

When a person files a personal injury claim in Michigan, and the claim is more than a half-million dollars, the auto insurance company is reimbursed by a state-created fund administered by the Michigan Catastrophic Claims Association. It’s basically an insurance policy for insurers.

No-Fault Insurance Reform

Jan 27, 2012

The battle over changing Michigan's auto insurance law is headed to court. The week a group filed a lawsuit seeking information about the assertions of the insurance industry. At issue is whether the law that requires insurers to cover an unlimited amount of medical care for injuries should be changed.