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How much will new taxes, assessments in No Fault insurance "reform" plan cost you?

Fiscal conservatives, Tea Party are right in opposing new taxes on Michigan No Fault Benefits in “Substitute for HB 4612”

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House Speaker Jase Bolger is proposing a new tax.

This tax is part of the No Fault insurance “reform” draft plan that’s being called “Substitute for HB 4612.”  The plan was presented by Speaker Bolger under the guise that it will save drivers money on their auto insurance (although in reality, that “savings” turns out to be a disappointing and temporary  savings of approximately $111 per year for only two years).*

But there are significant and longer-lasting taxes and assessments in the plan that will likely cancel out these “savings” and, ultimately, take a greater toll on auto insurance consumers’ pocketbooks, including:

  • A new $25 annual HICA tax. (Pages 35-36)
  • A new “Catastrophic Claims Assessment” for the new MCCA-type organization. (Pages 34-35)
  • A new $21 million annual assessment. (Page 78)
  • Continuing existing MCCA assessments. (Page 19)

Page numbers refer to the full, 91-page draft bill.

For more information, take a look at my recent blog posts on the promised “savings” from Speaker Bolger:

Tomorrow I will review the dangerous caps and limitations on No Fault benefits as part of Speaker Bolger’s “Substitute for HB 4612.”

* Calculation for 10% savings comes from the average annual Michigan auto insurance of $1,100 according to the National Association of Insurance Commissioners and the Insurance Institute of Michigan

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