Thanks for your timely reportage – as always. Just a couple of seemingly minor editorial comments. First, the article contains the following inaccurate sentence: “Member insurance companies will be reimbursed $145.00 per insured vehicle effective July 1, which is $1.91 or 1.3 percent increase over the current MCCA charge of $143.09.”
I think “reimbursed” in that sentence should be “charged” since the companies pay the MCCA pure premium charge based on their number of earned car years.
Similarly, the term “fee” in the headline is inaccurate – particularly in light of the confusion surrounding the MCCA’s function. Many are under the misimpression that the MCCA can – and does – impose fees that are tacked-on to premiums by force of law. Of course, the MCCA pure premium charge is indistinguishible in type and kind from other expense loads considered by insurers in their rate making, including other resinsurance costs.
It’s past due to reform MCCA funding sources. Behavior that increases the risk of serious injury on public roads should pay a higher portion. When points are awarded to drivers who flaunt suspended licenses, drive uninsured, drive impaired etc, then nondiscretionary and separate court costs should directly fund MCCA. Impound repeat offenders’ vehicles, and sell them with proceeds going to MCCA. Use these and similar proceeds to reduce MCCA’s annual balance and then spread the remaining balance across all registered vehicles.
Now, which state legislator with a backbone is willing to push this issue in Lansing? Judges who hold offenders prison time in abeyance are adding insult to injuryfor those who try their best to follow the law. Is anyone holding a seriously injured victim’s pain in abeyance?
And too bad there was not another way to collect from all the uninsured drivers that are able to take advantage of this “program”! I would like it collected at the SOS when plates
are renewed and based on family members, not vehicle. Why should I
pay the same fee with only one family member compared to a family of five. Think how much money this could generate and we could all
pay a much lower “fee”.
Clearly, this system is broken and needs to be mended, it is totally unfair to most drivers as 90% are subsidizing folks that are either uninsured or breaking the law DUI’s etc. yet still collecting millions from the system. Also motorcyclist’s do not pay in and yet collect over 7% of the money paid out…they need to pony up and the lifetime payout has to be capped…this is socialized auto insurance, where is the outcry for those who bemoan ss and other programs…could be the lawyers are making too much money from this..where is the Mackinac Center or the Chamber..come on guys. Michigan auto insurance rates are now the second worst in the nation, this can’t be good for any of us including business.
I am very sad reading the uninformed comments above. My grandson was injured in an automobile accident and became a quadrapolegic. He was not drunk, or high. He was not speeding. He was a licensed, insured driver, only 18 years old. I currently pay only $5 per 6 months for catastrophic insurance. I can afford another $1.91 per 6 months. If this insurance had not been in effect, my grandson would be covered by medicaid. You would still have to pay, but probably a lot more. These types of injuries cost in the millions of dollars. Perhaps you think it would be better if people injured catastrophically in an accident would just die……
Thanks for your timely reportage – as always. Just a couple of seemingly minor editorial comments. First, the article contains the following inaccurate sentence: “Member insurance companies will be reimbursed $145.00 per insured vehicle effective July 1, which is $1.91 or 1.3 percent increase over the current MCCA charge of $143.09.”
I think “reimbursed” in that sentence should be “charged” since the companies pay the MCCA pure premium charge based on their number of earned car years.
Similarly, the term “fee” in the headline is inaccurate – particularly in light of the confusion surrounding the MCCA’s function. Many are under the misimpression that the MCCA can – and does – impose fees that are tacked-on to premiums by force of law. Of course, the MCCA pure premium charge is indistinguishible in type and kind from other expense loads considered by insurers in their rate making, including other resinsurance costs.
Thanks for your attention to these details.
It’s past due to reform MCCA funding sources. Behavior that increases the risk of serious injury on public roads should pay a higher portion. When points are awarded to drivers who flaunt suspended licenses, drive uninsured, drive impaired etc, then nondiscretionary and separate court costs should directly fund MCCA. Impound repeat offenders’ vehicles, and sell them with proceeds going to MCCA. Use these and similar proceeds to reduce MCCA’s annual balance and then spread the remaining balance across all registered vehicles.
Now, which state legislator with a backbone is willing to push this issue in Lansing? Judges who hold offenders prison time in abeyance are adding insult to injuryfor those who try their best to follow the law. Is anyone holding a seriously injured victim’s pain in abeyance?
And too bad there was not another way to collect from all the uninsured drivers that are able to take advantage of this “program”! I would like it collected at the SOS when plates
are renewed and based on family members, not vehicle. Why should I
pay the same fee with only one family member compared to a family of five. Think how much money this could generate and we could all
pay a much lower “fee”.
Clearly, this system is broken and needs to be mended, it is totally unfair to most drivers as 90% are subsidizing folks that are either uninsured or breaking the law DUI’s etc. yet still collecting millions from the system. Also motorcyclist’s do not pay in and yet collect over 7% of the money paid out…they need to pony up and the lifetime payout has to be capped…this is socialized auto insurance, where is the outcry for those who bemoan ss and other programs…could be the lawyers are making too much money from this..where is the Mackinac Center or the Chamber..come on guys. Michigan auto insurance rates are now the second worst in the nation, this can’t be good for any of us including business.
I am very sad reading the uninformed comments above. My grandson was injured in an automobile accident and became a quadrapolegic. He was not drunk, or high. He was not speeding. He was a licensed, insured driver, only 18 years old. I currently pay only $5 per 6 months for catastrophic insurance. I can afford another $1.91 per 6 months. If this insurance had not been in effect, my grandson would be covered by medicaid. You would still have to pay, but probably a lot more. These types of injuries cost in the millions of dollars. Perhaps you think it would be better if people injured catastrophically in an accident would just die……