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Michigan Drivers Face Insurance Rate Hike

The Michigan Catastrophic Claims Association announces that motorists will see a $30 increase per vehicle.

Michigan motorists beware: The cost of driving won't just be going up this summer because of gas prices. The Michigan Catastrophic Claims Association on Friday announced that auto insurance, mandatory for every vehicle on the roadways, will increase by $30 for each policy on July 1.

The 21 percent increase — to $175 per vehicle — is the highest in the history of a state fund that covers claims for unlimited lifetime medical benefits under Michigan's no-fault auto insurance law, the Detroit Free Press reported today.

That fund is adjusted annually. Of the $175, $141.93 is to cover claims, $32.72 is to address a long-term deficit in the fund, and 35 cents is for administrative costs, according to the Free Press.

Pete Kuhnmuench, executive director of the Insurance Institute of Michigan, told the Free Press that the cost of medical care for auto accident victims has risen 166 percent since 2002. Those costs are getting passed along to all drivers, he said, which "validates our calls for reform."

Patch reader Ron Dwyer, an insurance agent based in Waterford, agrees.

"As an insurance agent I can tell you Michigan's auto insurance rates are one of the highest in the nation," he wrote on the Bloomfield Patch Facebook Page. "No-fault law was to have kept our rates low, but with loop holes in the system and unlimited benefits our rates keep rising to astronomical levels. Legislators in Lansing are looking at plans that will put optional caps on coverage to help lower costs. To be paying $ 175 per vehicle to the Michigan Catastrophic Claims Association is ludicrous!"

But the reforms shouldn't be limited to insurance, he added.

"We must also get reforms in our health care. Insurance companies usually pay twice as much if not more for health care. Some of these costs are mandated! Why should an insurance company be forced to pay twice as much for health care? These costs get passed on to you and I," Dwyer wrote.

Legislators quoted by the Free Press indicate the increase is sure to add to the ongoing debate in Lansing about whether the MCCA needs more transparency and that the no-fault law needs changes.

Lianne Mathie May 03, 2013 at 10:06 PM
I touched on just Katrina, but denial in coverage is broad across all insurance markets. Try getting a pricey test in the hospital and see if they give that a thumbs up.Once again, back to the lawyers to enforce that policy. Sure, there's lots of people that are underinsured. However, that's not the point I was originally making. I believe that we need a whole lot more transparency. Example. The House today passed the cap at 1 million. There is talk of refunding a total of 125.00 per motorist, because the MCCA will kick it back. However, the MCCA was collect 170 and change, so what's up with that 50? Poof? As for fraud, I have no argument with that, but why do honest people need to fight to enforce the policys?
Notyor Biznez May 07, 2013 at 11:48 AM
Fine, I'll pay your insurance rates but I'd like to see more vehicles impounded and towed away from people who don't pay what I pay for insurance because, honestly, I think I'm one of the people blacklisted and having to pay this while some people are in on the buddy system or other less than straight up means. It was always the impression I got that the older one got, without any accidents, one's premiums would go down. You're telling us nothing we we're told was true, so I am going to hold you to that down to the last micro-detail.
Notyor Biznez May 07, 2013 at 12:13 PM
Them people, asking so much of the other people via insurance and other paper work. Perhaps they are in over their heads, or just posing as if they are in over their heads? I don't really wan't to be a good humanitarian any longer and throw these people a lifeline, how can I get around helping as few people as possible without risk of imprisonment?
doug May 07, 2013 at 02:53 PM
Remember this number.....49... That the number of states that have limits on medical coverage related to auto accidents. How about another 49.. That was the number of states who offered movie incentives that were less than the 42% Michigan was offering. In this case "we're number #1" is not something to cheer about.
Teabilly Huntin' May 07, 2013 at 07:04 PM
Ron Dwyer. lol. Shill for McMillin and Insurance industry.

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