Just want to point out that the $186 per car-year is the cost for the layer of coverage above $530k, and is constant for every insurer, since it is dictated by the Michigan Catastrophic Claims Association, which reinsures that layer. Th3 $186 doesn’t include the cost of the $0-530k layer, which varies by insurer.
The Michigan Catastrophic Claims Association’s fund is insolvent. The only reason this house of cards hasn’t fallen down is the State of Michigan has granted the MCCA the ability to discount their claim reserves. Even with this financial chicanery, the fund is almost $1.9 Billion in the hole (as opposed to $53 Billion in the hole if generally accepted accounting standards were maintained).
How does any of this reduce the cost of car insurance . The insurance companies want redress from long term medical care but do not want to guarantee any savings to the insured . I know people who live in Ferndale that drive inexpensive vehicles that are paying nearly $2,000 dollars a year for coverage . This reform does nothing to address the exorbitant insurance costs to the people living in most any urban area . If you live within a certain distance of Detroit you will pay a ridiculous price for auto insurance . It does not matter weather you have not had any claims for decades your insurance will always be two or three time higher than those outside of this “ZONE” . The state of Michigan has always given auto insurance companies whatever they want at the expense of it’s citizens . How is it that coverage for an 8 year old car should cost nearly $2,000 a year ? Why are good drivers paying for the mistakes of poor drivers all for the benefit of higher profits for auto insurers .
Just want to point out that the $186 per car-year is the cost for the layer of coverage above $530k, and is constant for every insurer, since it is dictated by the Michigan Catastrophic Claims Association, which reinsures that layer. Th3 $186 doesn’t include the cost of the $0-530k layer, which varies by insurer.
The Michigan Catastrophic Claims Association’s fund is insolvent. The only reason this house of cards hasn’t fallen down is the State of Michigan has granted the MCCA the ability to discount their claim reserves. Even with this financial chicanery, the fund is almost $1.9 Billion in the hole (as opposed to $53 Billion in the hole if generally accepted accounting standards were maintained).
How does any of this reduce the cost of car insurance . The insurance companies want redress from long term medical care but do not want to guarantee any savings to the insured . I know people who live in Ferndale that drive inexpensive vehicles that are paying nearly $2,000 dollars a year for coverage . This reform does nothing to address the exorbitant insurance costs to the people living in most any urban area . If you live within a certain distance of Detroit you will pay a ridiculous price for auto insurance . It does not matter weather you have not had any claims for decades your insurance will always be two or three time higher than those outside of this “ZONE” . The state of Michigan has always given auto insurance companies whatever they want at the expense of it’s citizens . How is it that coverage for an 8 year old car should cost nearly $2,000 a year ? Why are good drivers paying for the mistakes of poor drivers all for the benefit of higher profits for auto insurers .