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What are your ideas for lowering auto insurance in Michigan?

March 3, 2015 by Steven M. Gursten

Sound off and share your thoughts with Michigan Auto Law

lower MI auto insurance

Last week, I wrote a comprehensive series with ideas on how to lower the cost of car insurance in Michigan. I believe my 14-step “Action Plan ”will both protect and preserve No Fault insurance for the thousands of people who have been terribly hurt in automobile accidents and desperately depend upon it, and still lower the price of auto insurance for all consumers.

You can read my action plan here.

We received a lot of feedback on social media. Today I want to share some great Facebook comments:

Nick Weatherhead: Even a slight tweak with the MCCA fees could help everybody out. Right now everyone who is insured pays about $190 a year per vehicle to the MCCA while all the uninsured vehicles/drivers on the road contribute nothing to the MCCA and reap the benefits of they are involved in an accident. I think instead of assessing the $190 fee on insurance policies is have those fees included with your license plate tabs. Everyone’s auto insurance policy would decrease $190/vehicle. You pay them anyways in your insurance so it doesn’t financially effect the insured drivers, but the MCCA would now be receiving their money from all the uninsured drivers too, this would create a surplus in the fund and drive the annual fee down. Just like if every driver was insured everybody’s rates would decrease. The more people contributing to the pot the less everyone has to contribute.

My thought: This is a great idea. It is estimated that over 50% of drivers in some cities like Detroit are driving “dirty,” or without any auto insurance. Increasing the number of people paying MCCA fees, as Mr. Weatherhead suggests, would drive down the amount each driver pays.  It is currently estimated that rougly one million drivers on Michigan roads are driving without insurance.  That would be a million more people to pay the MCCA fees.

Rob Roll: I believe we have a moral obligation to take care of those we injure…and to do it with insurance money not our retirement.

Shy Turner: Michigan Auto Law I totally agree with your “14 steps” Michiganders need insurance commissioners that are actively interested in correcting the flaws within the insurance systems… Maybe they need to hire you guys to think for them, because those 14 steps should have already been addressed a long time ago… Michigan’s Insurance Commissioners have failed Michigan…

Mark Bello: Well….they certainly don’t have any problem capping the recoveries of Michigan citizens when they are injured, whether it be by virtue of policy limits or by legislative “tort reform”. So, if insurance companies benefit from these caps on recoveries, why shouldn’t citizens benefit from corresponding caps on premiums. It is only fair….

Today, I want to ask our readers:

What are your ideas for lowering the cost of car insurance in Michigan?

Feel free to share your opinion by making a comment below, or on our Michigan Auto Law Facebook, Twitter or Google+ pages.

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