Defeat of no fault auto insurance overhaul doesn't end the debate over high rates

[TexasTowelie]

LANSING — A proposal to overhaul Michigan’s no fault auto insurance system may have been delivered a death blow in the state House of Representatives, but it certainly won’t be the end of the discussion.

Lawmakers and Detroit Mayor Mike Duggan, who pushed the proposal hard, are saying they’ll be back with more proposals next year that will deliver insurance rate reductions to Michigan drivers.

“We’ll come back next year and the year after that and try again until we get rate cuts for everybody,” Duggan said following the 45-63 vote on the auto insurance proposal Thursday night. “We’ve got more ideas and we’ll be back because I’m not going to quit until we get something through.”

He enlisted Detroit’s business community to get involved in the fight and they lobbied Democratic lawmakers in an attempt to get the 10-15 votes that were needed to compensate for the 22 Republican votes against the overhaul.

Read more: http://www.freep.com/story/news/politics/2017/11/04/no-fault-auto-insurance-defeat/830441001/

[MichMan]

1. Michigan is the only state with unlimited lifetime medical benefits

The Detroit Free Press did a big investigative series of articles abut the high rates and the amount of fraud

1) Hospitals and doctors are charging obscene rates for procedures once they find out the insurance is paying. $5000 for an MRI

2) Accident lawyers are soliciting patients with promises of big payouts and steering them to clinics that are charging very high rates for medical procedures. The lawyers then get a kickback from the medical providers. People with injuries can put in a claim for 24 hour attendant care which often means a spouse is then paid an hourly wage billed to the insurance companies

3) High auto theft rates in Detroit. In addition, Detroit has medical claims far exceeding the average for the rest of the state for reasons above.

4) 7 day insurance policies are allowed. Proof of insurance is required for license plate renewals, so motorists just buy a 7 day policy, get the plates and let the insurance lapse.

5) Estimates ae that 50% of Detroit drivers are driving uninsured creating a high incidence of hit and run

6) Many residents use addresses from relatives outside the city to get cheaper rates which means they can't vote in Detroit elections

[llmart]

2. I don't understand your #6.

I haven't followed this issue closely enough, but living in the burbs our rates are still astronomical. i have lived in a few different states and never have I had to pay such high auto insurance rates. Why do Michiganders stand for this? Honestly, sometimes I think the people in Michigan won't be happy until the state is looked upon as backwards when once they were admired.

[MichMan]

3. The suburbs still have cheaper insurance than those in the city

Many Detroiters use the addresses of relatives in the suburbs to get cheaper rates. When they do so, they are no longer considered Detroit residents and are not allowed to vote in Detroit city elections. They also most pay less city income tax as well, which deprives the city of dollars

[llmart]

4. Thanks for the info.

I'm not originally from Michigan, but when I moved here I was shocked at how high the rates were.

We still pay very high rates as far as I'm concerned. We need to do something about this issue.