auto insurance ~ Keep state's auto insurance the best : It's unfortunate to see the Free Press taking insurance industry spin at face value. I'm referring to the March 27 article "Auto insurance in Michigan highest in U.S.," in which Michigan's insurance rates are blamed on a state law that requires insurers to issue "unlimited" coverage for injuries in auto accidents.
The truth is, Michigan auto injury benefits are far from unlimited. It's true that Michigan auto accident survivors are not capped on their personal injury claims, but accident victims can recover benefits only for treatments deemed to be reasonable and necessary. Insurers are on the hook only for the first $480,000 in medical expenses. Severe injuries that exceed that amount are covered by the Michigan Catastrophic Claims Association, a fund that all Michigan drivers pay into.
The fact that medical care does not stop once a $50,000, $100,000 or even $500,000 medical limit is reached means that Michigan's severely injured accident victims have the chance of a full recovery without worrying about bankrupting their family to pay their medical bills or turning to state taxpayers for Medicaid.
It's this basic feature that makes our auto insurance system the best value in the country and the model for no-fault insurance.
Policyholders should start asking their insurance company to look at the most expensive part of a policy. Collision coverage accounts for 50% to 60% of the average insurance premium in Michigan. Drivers should also ask the state to provide stronger oversight of the insurance industry. Michigan requires all drivers to pay for insurance, yet there is almost no regulation over how much insurers are allowed to charge.
John Cornack
President, Coalition Protecting Auto No-Fault, Lansing
Insurers have claimed that the allowable medical expense benefit accounts for approximately 20% of the Michigan auto insurance premium. However, even if you reduced the average premium in our state by up to 15%, we'd still be in the top-five most expensive states to insure a vehicle.
How can it be that collision insurance alone makes up more than 50% of average insurance premiums in our state? There are a number of states where the entire annual insurance premium is less than that, and it can't be because their drivers collide less.
Michael Dabbs
President, Brain Injury Association of Michigan, Brighton
What started as a seemingly innocuous fee ($3 in 1978) has grown into an enormous burden ($145 for 2011).
To those legislators who say they are too busy or, more likely, too beholden to the insurance industry's political donations to abolish the assessment this year, we have a message: Get busy, or we'll get busy with putting you on the street in the next election cycle.
Jeffrey Gorman
Clarkston
Michigan drivers who are seriously injured in a car crash are guaranteed unlimited lifetime medical benefits, attendant care, wage loss and replacement services -- to the extent those benefits are reasonably necessary to the injured driver's care, recovery and rehabilitation.
The Michigan no-fault insurance system is, quite simply, one of the very best things that we have in our state.
Steven M. Gursten
Cochair, Michigan Association for Justice, Auto Accident No-Fault Committee, Farmington Hills
The fact that medical care does not stop once a $50,000, $100,000 or even $500,000 medical limit is reached means that Michigan's severely injured accident victims have the chance of a full recovery without worrying about bankrupting their family to pay their medical bills or turning to state taxpayers for Medicaid.
It's this basic feature that makes our auto insurance system the best value in the country and the model for no-fault insurance.
Policyholders should start asking their insurance company to look at the most expensive part of a policy. Collision coverage accounts for 50% to 60% of the average insurance premium in Michigan. Drivers should also ask the state to provide stronger oversight of the insurance industry. Michigan requires all drivers to pay for insurance, yet there is almost no regulation over how much insurers are allowed to charge.
John Cornack
President, Coalition Protecting Auto No-Fault, Lansing
Cut collision rates
Michigan's auto insurers continue to try to blame our state's high auto insurance rates on our unique no-fault system, which ensures individuals are not burdened with a lifetime's worth of medical bills in the event of an accident.Insurers have claimed that the allowable medical expense benefit accounts for approximately 20% of the Michigan auto insurance premium. However, even if you reduced the average premium in our state by up to 15%, we'd still be in the top-five most expensive states to insure a vehicle.
How can it be that collision insurance alone makes up more than 50% of average insurance premiums in our state? There are a number of states where the entire annual insurance premium is less than that, and it can't be because their drivers collide less.
Michael Dabbs
President, Brain Injury Association of Michigan, Brighton
Growing burden
Moving back to my home state from the People's Republic of Kalifornia, the last thing I expected was to pay more for auto insurance. Despite moving to the rather bucolic roads of Michigan from the crowded, uninsured-motorist-laden streets of southern California, I would pay a lot more due to the Michigan Catastrophic Claims Association assessment.What started as a seemingly innocuous fee ($3 in 1978) has grown into an enormous burden ($145 for 2011).
To those legislators who say they are too busy or, more likely, too beholden to the insurance industry's political donations to abolish the assessment this year, we have a message: Get busy, or we'll get busy with putting you on the street in the next election cycle.
Jeffrey Gorman
Clarkston
The best system
Michigan drivers have the best insurance system in the country, but some Michigan lawmakers want to dismantle that system -- so insurance companies can reap even bigger profits. Instead of taking a hard look at these record-breaking profits, proposed bills would dismantle important protections for drivers and shift the costs and burden to Medicaid and the taxpayers.Michigan drivers who are seriously injured in a car crash are guaranteed unlimited lifetime medical benefits, attendant care, wage loss and replacement services -- to the extent those benefits are reasonably necessary to the injured driver's care, recovery and rehabilitation.
The Michigan no-fault insurance system is, quite simply, one of the very best things that we have in our state.
Steven M. Gursten
Cochair, Michigan Association for Justice, Auto Accident No-Fault Committee, Farmington Hills
