Michigan Auto Insurance System, Costs, Insurers Under Fire

February 5, 2009

  • February 5, 2009 at 12:29 pm
    Chuck says:
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    Here goes Jenny again scaring more business out of the state of Michigan. The insurance industry is one of the few industries that Michigan has left. She has already pissed them off with the MBT and now she thinks that she is going to tell them how to price their product! What a dumb bi*ch.

  • February 5, 2009 at 12:47 pm
    crabber says:
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    Typical politicians, focusing on a scapegoat instead of real solutions. They must be losing the battle against fraud and are now blaming the insurers. Isn’t it funny how Hollowell claims his recommendations will lower “costs”, when they will do no such thing? They will simply lower rates – well, in the short term anyway.
    He says “affordability”, I say “subsidizeability”.
    He says “consumers should have the ability to challenge rate increase requests”, I say “go get some quotes”. This is how capitalism works. Consumers do have the power to regulate rates – they choose not to buy from carriers whose rates are too high. Michigan should be focused on encouraging insurers to enter the state, not leave it.

  • February 5, 2009 at 1:02 am
    caffiend says:
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    “9. Enact tougher penalties for companies who raise a policyholder’s rates, or cancel a policyholder’s policy, after a claim is submitted, when the policyholder is not at-fault. Routine Market Conduct Examinations should be initiated to determine industry compliance with this policy. Furthermore, there should be education to inform consumers that this practice is illegal.”

    What this guy doesn’t realize is that the company isn’t RAISING the rates, for those stay the same. What is occuring is that the driver/policy is losing the Safe-driver/claims-free discounts that many companies apply to a policy after 1+ years of loss free experience.

  • February 5, 2009 at 1:49 am
    Local Boy says:
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    “Consumer advocate” Hollowell is a political hack who is Jenny’s lap dog. He will say anything he is told to.Economics and reality don’t cloud his vision.
    Won’t they ever learn you can’t have price control without, at least, cost control.

  • February 5, 2009 at 2:46 am
    Ratemaker says:
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    1. Enact a definition of premium affordability that assures that auto insurance rates are available to Michigan consumers at fair and reasonable rates.

    I define “fair and reasonable” as “commensurate with the cost of providing coverage plus a fair profit margin.” The free market has and will continue to drive prices there if you just let it work.

    2. Require insurance companies to obtain the insurance commissioner’s approval, prior to raising their rates.

    Prior approval laws do nothing except hinder the ability of the free market to work. Heck, the US Senate advocated “File and Use” back in the 1960′s.

    3. Give consumers who have purchased collision insurance the right to recover actual repair costs to the vehicle from the at-fault party in an accident.

    Okay, I actually agree with this one. Collision and PD coverage function vastly differently in Michigan than in other states, and I wouldn’t mind seeing that difference erased.

    6. Close the loopholes that allow insurers to use criteria such as credit scores, occupation and level of education.

    Yes, how dare those filthy companies try to use tools to predict losses more accurately.

    7. On a pilot basis, consider the option of offering a low cost auto insurance policy, while continuing to provide full health care benefits to consumers.

    umm… Butch? The full health care benefits are why Michigan’s auto policies cost so darn much.
    10. Give consumers reasonable oversight authority over company rating practices by requiring companies to prominently publish proposed rate increases on the insurance regulator’s Web site and by allowing consumers to challenge proposed rate increases, before they go into effect.

    No offense, but what the heck do consumers know? That’s the commissioner’s friggin’ job!!!

  • February 5, 2009 at 2:55 am
    Eli says:
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    The governor has bigger fish to fry. Since the demise of the “little three” is on the horizon, the state is soon to become a welfare state. There will be hoards of unemployed, unskilled autoworkers who, when added to the hoards of certain indigent, un-skilled people who have destroyed downtown Detroit, will bankrupt the state. Kind of makes auto premiums look un-important. Of course the Motor City can look to the fine contributions of Coleman Yound and Kwamee Fitzpatrick for their fine leadership and vision.

  • March 4, 2009 at 3:56 am
    ray says:
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    Michigan Goverment has been talking about this for years but they never do anything about it why you ask,because our Michigan Goverment have been lining there pockets with your hard earn money. They only talk about doing something to make them look good what a butch of crap. This will never happen…………..

  • February 8, 2013 at 12:38 pm
    Rick says:
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    These are mostly ‘common sense’ regulations.
    Most of the commenters above graphically display how we have become unwitting stooges of the insurance industry, based on fear and a general ignorance of human nature in general. Regulations that allow insurance companies to rape us at gun point (insurance is mandatory if you want the basic convenience of transporting yourself) are what have caused Michigans insurance rates to rise dramatically to the point where it cost almost 6k a year in Detroit.
    Someone above said ‘shop around’. What a joke! The ranges I have found start at ‘ultra-exhorbitan’t and go to ‘insanely prohibitive’, which in reality is about a 5% margin. In this arena consumers do not have the ‘right not to buy from carriers whose rates are too high’…get a clue man!

    Someone above also said something about ‘predicting losses’. The way the game is rigged, ‘losses’ are an impossibility for them, an absolute for the common man. They have their guaranteed massive income guaranteed via the system, mandated in a way that us poor prey cannot escape. All of this certainly helps the lawyres and doctors to stay filthy rich. Those poor folk will just have to ask for more overtime at Wal-Mart because the insurance companies are helping the quack and the ambulance chaser keep up with each others Jones’ing.



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