By on April 27, 2015

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Michigan is the state with the most expensive insurance in the United States. However, a potential overhaul could bring down those costs.

As it stands, Michigan’s motorists pay 136 percent above the national average of $815 a year for a policy, with the state’s overall average coming to $1,923/annually, Detroit Free Press reports. Additionally, Wayne County is the most expensive place to have a policy in Michigan, averaging $2,789 — 45 percent above the state’s average — per year.

According to insuranceQuotes.com senior analyst Laura Adams, the reasons behind Michigan’s No. 1 rank are due to it being the only state to offer unlimited lifetime personal injury protection, and because it has an unusually high amount of uninsured motorists.

That said, the state’s legislators are planning to retune the no-fault auto insurance system, which would maintain the unlimited benefit for those who suffer injuries costing over $545,000, but would place caps on other parts of the system, such as rates for home health care providers. The reform is expected to be passed sometime within the week.

[Photo credit: Angela/Flickr]

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105 Comments on “High Auto Insurance Rates Plague Michigan, Legislators Seek Relief...”


  • avatar
    CoreyDL

    “national average of $815 a year” Ha.
    “state’s overall average coming to $1,923/annually” Haaaaa.

    $544.48/yr, yaaaay.

    I wonder if Mr. Bball lives in Wayne Co. I think he do.

    • 0 avatar
      morbo

      Mr. BBall? Really??? You couldn’t leave the coded racism out of the first comment???

      At least admit it directly rather than pansying out about it.

      • 0 avatar
        CoreyDL

        Well,

        1) That’s part of his screen name.
        2) That’s what I call him.
        3) I’m about 99% sure he’s white anyway.

        So you could get a grip or something.

        • 0 avatar
          morbo

          You could stop using coded racism in your comments about ‘these people’.

          One of ‘these people’ also once paid high car insurance. And once ‘these peoples’ home state ended the lifetime unlimited medical residuals, ‘these peoples’ insurance rate dropped back to national average.

          If you’re going to be a racist, be a proud racist. Stop using terms which imply a negative attitude to others.

          Or just keep being a ‘tuff’ guy anonymously on the internet. Whatever.

          • 0 avatar
            CoreyDL

            I’m really very confused by your problem with me. I never even used the term “these people.” Please show me if you can find where I did.

            :)

      • 0 avatar
        bball40dtw

        racism?!?!

        • 0 avatar
          morbo

          In response to CoreyDl, since the comments sections won’t permit the chain to go further

          “The people who aren’t buying insurance just don’t buy it ever. Doesn’t matter if it costs $200 or $12,000. They aren’t buying because they don’t give AF. Same people who think they’re entitled not to pay their water bill in the city because “I think it’s too expensive. And I deserve water.” – which I take to imply the largely Black population of Detroit and the recent privatization efforts by Kevin Orr of the municipal water dept.

          “How do we rid ourselves of these people without: 1) complete socialism or 2) some Geneva Convention violation” – In same reference to the largely Black population of Detroit, specifically using the term ‘these people’.

          Again, make whatever comments you want. Just don’t pretend you have the moral high ground and aren’t using coded racist terminology.

          • 0 avatar
            bball40dtw

            Oh no, not the water discussion. How can you run a municipal water system when 50% of the users are delinquent?

          • 0 avatar
            28-Cars-Later

            S*itbags come in all flavors. My extremely limited understanding of the water situation in Detroit is the city turned into, well Detroit, and the folks at the water utility keep wanting paid to a level as if was 1959. You will see this repeat throughout the overleveraged cities/states of America as the nation continues to slowly collapse. I realize there are legal precedents here and whatnot. but if a local economy goes south inefficient gov’t entities need to adjust to these realities.

          • 0 avatar
            bball40dtw

            28-

            It’s not the employees. It’s the people not paying. Remember that the Detroit water system provides water to most of the detroit suburbs as well. There is a payment problem in the city.

            The Detroit Metro area hasn’t really lost that much population from peak, if at all. Everyone just moved out of the City of Detroit.

          • 0 avatar
            28-Cars-Later

            I’ll take your word for it since you’re the man on the ground. My mother informed me Pgh water is going up 77% THIS YEAR because the water authority is finally being forced to replace 80-100 year old pipes they’ve known to replace for well at least the last forty years.

          • 0 avatar
            Dan

            So expecting people to pay their water bills is secret racism now. You people amaze me.

          • 0 avatar
            Kevin Jaeger

            Whatever you do don’t mention the carjackings.

            Less carjacking = lower rates.
            Same could be said for vandalism,hit and run, etc.

            All racist concepts, of course.

          • 0 avatar
            bball40dtw

            The benefit programs have started to change at the Detroit water dept. The biggest issue the departemnt of water faces is the inequity in rates by area. I pay more for water in the suburbs because the city of Detroit had control of the whole system until last year. Guess where they raised rates? Not in the city.

            It’s too late to build a whole new Oakland and Macomb (the two lareg counties north of Detroit) system though. the cost is prohibitive. Now that it’s a regionally run system, it’s going to get more expensive for people in Detroit. Plus, someone will actually make them pay.

          • 0 avatar
            Jgwag1985

            Right, and the delinquent business owners like a real estate office that owes $80k. You know about them right? Vargo golf owes $478k. State of Michigan owes $5M!! Why weren’t they targeted for shut offs?

            Meanwhile Nestle is paying nothing to take all the water it can from Michigan. Talk about entitlement.

          • 0 avatar
            bball40dtw

            Jgwag-

            Businesses and non-consumer customers should pay too. Most have made arrangements. The city has payment plans and programs set up. Also, just because someone or something else does something wrong doesn’t mean that its right. People should pay their water bills or move someplace that water is not a utility they have to pay directly.

      • 0 avatar
        MrGreenMan

        You’ve got the antennas cranked up too high, Morbo; you’re getting your own feedback. Maybe you ate another bad hippie instead of the cyclops girl, or you’ve got Colemanitis and it’s time to channel your inner Dave Bing.

        Detroit has a number of problems; CoreyDL said nothing that I haven’t heard from my friends who were in the New York Times rebuilding houses and trying to prop up neighborhoods the old fashioned way – to help their people have a good life.

        The water issue is probably what the rest of the world knows about, since we had a bunch of airdropped activists from Hollywood make it one more way to mock Detroit and make Detroiters and Michiganders both look worse than SBPDL’s most extreme caricature. It’s this generation’s Roger and Me moment – Flint sends its love for the Rabbit Woman.

        Most of those honest Detroiters I know who want to have a nice house, a nice car, nice places to shop, and to be able to live peacefully are black; most of the trouble makers are, too, but when black people are 90% of the population – that’s like saying that most of the trouble makers out in Owosso are white. There is no new information there. The people who can clean up Detroit are going to be mostly black, too, because Detroit’s mostly black.

        Lots of people would like to see the City of Detroit once again the Paris of the Midwest…but, as I read Corey’s statement, there is a powerlessness to do anything from outside 8-Mile and beyond the Southfield, as the two obvious plans – either throwing money at it (“complete socialism”) or replacing local control and installing an activist undemocratic government akin to martial law (“violation of the Geneva convention”) – are both non-starters.

        Edit: I misremembered the quote as “communism” instead of “complete socialism”.

    • 0 avatar
      bball40dtw

      I live in Oakland County. It’s north of Detroit. However, I do live within 2 1/2 miles of the city. My wife and I each pay around $1400/year for auto insurance. We have no tickets, no at fault accidents, and our only claim in at least 10 years was a $70 glass claim two years ago. I try to switch every six months, but our current carrier is much cheaper than the competitors.

      I do have excellent coverages:

      $500 broad form collision
      $250 comp with $0 glass
      High liability coverages
      Lifetime medical – state minimum
      $1,000,000 property damage – state minimum

      The cost is still insane. The change in the law isn’t going to do anything to insurance costs. The medical portion of out insurance costs us around $300/year, including a per policy fee that isn’t going away.

      • 0 avatar
        CoreyDL

        That’s nuts! Thanks.

      • 0 avatar
        Vulpine

        Changing insurance companies so frequently isn’t helping you. I’ve been with one insurance company nearly all my life and while my rates may not be great compared to some (I find that unlikely considering where I live) my ‘loyalty’ to the company alone gets me a significant discount. I have to note that a number of other brands, like Allstate and Liberty I believe, specifically advertise reduced rates the longer you stay with them and the longer you go without a claim. Changing companies every 6 months just seems counter productive.

        • 0 avatar
          bball40dtw

          I haven’t changed insurance companies in 6 years. I should have made it more clear; I get quotes from other insurance companies every 6 months or so. They are never cheaper, so I am still with the same company.

        • 0 avatar
          krhodes1

          You have to shop your business around periodically. I have an insurance broker who does it for me now. Though the savings need to be substantial for me to actually switch.

          Maine’s cheap though – I just got my renewal for my current three cars – $800 total. Full coverage, high limits, $500/col $100/comp deductibles. Low annual mileage though, and I am not looking forward to what the new 320hp buggy is going to cost to add when it finally arrives.

        • 0 avatar
          Jgwag1985

          BS. I’ve been with AAA 19 years, no claims, then a dear tries to commit suicide. I pay the $550 deductible AAA pays $385. Policy renewal comes, policy goes up (same coverage, same car a year older, still a clean driving record) $415!! Animal aren’t supposed to count against you in Michigan. Right. AAA is not for profit. Check out the employees cars in the parking lot. Not for profit my *s*. Changing insurance is the best thing to do.

      • 0 avatar
        MBella

        The biggest issue in Michigan is the so-called “No-Fault” law. If you make a claim, even if the other party was 100% at fault, your insurance is going up just the same as if you were at fault. Let the people who cause accidents pay. The medical is the other killer cost. Get rid of the no-fault, and change required medical coverage back to what is normal nationwide.

  • avatar
    TR4

    So according to Laura, insurance is expensive because of all the uninsured drivers. Anyone else think it might be the other way round, i.e. the high number of uninsured drivers is because of the high cost?

    • 0 avatar
      CoreyDL

      I don’t think so. The prices didn’t -start out- high, they became high due to insurer experience in that state.

      The people who aren’t buying insurance just don’t buy it ever. Doesn’t matter if it costs $200 or $12,000. They aren’t buying because they don’t give AF. Same people who think they’re entitled not to pay their water bill in the city because “I think it’s too expensive. And I deserve water.”

    • 0 avatar
      319583076

      If you can’t afford insurance, you shouldn’t drive.

      I loathe the members of our society who freely exempt themselves from the rules, obligations, and customs of our society.

      • 0 avatar
        CoreyDL

        How do we rid ourselves of these people without: 1) complete socialism or 2) some Geneva Convention violation?

      • 0 avatar
        Vulpine

        I don’t know how it is in other states, but in Maryland if you cannot provide proof of insurance then they WILL pull the tags from the car AND charge you for driving without insurance. If that’s not enough, if you cannot decisively demonstrate valid insurance after a given amount of time and you are caught on the roads still driving that same vehicle, it will be confiscated and the charge now includes jail time and additional fines–including forfeiture of of driving privileges.

        • 0 avatar
          CoreyDL

          At the Ohio BMV, you just have to answer yes to the following verbal question: “Do you have car insurance?” And then sign a statement saying you understand that insurance is required.

          Also, in theory they will ask for proof of insurance when you get pulled over. I have never been asked for that.

          • 0 avatar
            sproc

            In last 10 years, I’ve registered cars in Louisiana, California, Rhode Island and the District of Columbia. Every single one required proof of insurance or you were wasting your time. I really liked the way CA did it–you didn’t have to bring your insurance card in, insurers reported insurance status electronically direct to the DMV. I also think insurers there were required to report when policies were cancelled without a replacement policy or a sale of the vehicle. Good policy, IMHO.

        • 0 avatar
          highdesertcat

          ” in Maryland if you cannot provide proof of insurance then they WILL pull the tags from the car AND charge you for driving without insurance.”

          This is true in NM as well. Still, more than 60% of the population driving here has either no drivers license and/or no insurance.

          • 0 avatar
            krhodes1

            Maine tried that for a while, it was such a fiasco they stopped doing it.

            If you register a car in person you have to present proof of insurance, and there is a stiff fine that cops LOVE to hand out for not having proof on you if you get pulled over. If you re-register online, you only have to type anything in the policy number box, there is no back-end checking. Of course you could fake the proof to insurance too.

          • 0 avatar
            golden2husky

            I believe that most of those who drive without insurance do so because they feel that they have little, if anything to lose. Well, they have two things to lose. One, automatic confiscation and auctioning off of the vehicle would be a good start. Two, confiscate their freedom. Automatic jail time for willfully driving without insurance. These freeloaders simply drive the costs up for those of us who do pay and that is just not acceptable. Maybe a year of incarceration will be a deterrent.

          • 0 avatar
            highdesertcat

            krhodes1, they cancel the insurance AFTER they get the registration and plates, and then try to avoid getting pulled over.

            One guy in NM, as per the nightly news, had 17 DWIs, no license and no insurance and was still driving his truck, drunk or sober.

            golden2husky, you’re right ONLY if what you prescribe is actually done, and most states do not do what you recommended.

          • 0 avatar
            krhodes1

            @HDC

            Of course, people do the same thing here. But if you get pulled over, you are going to pay.

          • 0 avatar
            highdesertcat

            No doubt. People are pretty much the same wherever you go.

            USAA, my insurance provider, urges me to get Uninsured Motorist coverage, even on the state-mandated minimum coverages I carry on the vehicles registered in my name.

            Uninsured motorists are a real menace in NM, CO, AZ and West TX.

            And insurance is dirt cheap here. I just got my insurance bill on my truck and it is $65.95 for six months, which includes several discounts.

            Were I to add UM coverage, my bill would be over $100 for the same six months.

            Yeah, I can’t see paying for someone else’s insurance coverage.

  • avatar
    S2k Chris

    OTOH, housing can be bought with change from a $50 bill, so there is that.

    • 0 avatar
      CoreyDL

      This is true. I’m sure the cheaper housing more than makes up for the costs of insurance. Is homeowner’s insurance waaaay high as well, I wonder?

    • 0 avatar
      bball40dtw

      Believe me, you don’t want that $50 house. Not even because the $50 house is probably trash.

      Here are expenses you must incur for your sub-$500 Detroit house:

      1) turn all utilities back on – may not actually be connected to any
      2) put in wiring/plumbing that was all scrapped
      3) pay someone to watch house so it doesn’t get gutted
      4) put in wiring/plumbing that was all scrapped again
      5) pay to bring it up to section 8 code
      6) get section 8 tenant in home
      7) put in wiring/plumbing that was all scrapped by section 8 tenant
      8) gasoline to burn down house and collect insurance money
      9) bail money
      10) money to live in country where you won’t be extradited

      *back taxes or previous leins also may need to be satisfied

  • avatar
    mikehgl

    It’s become so unaffordable to insure a vehicle in this state that regular old law abiding citizens are driving dirty. Auto insurance for young people just getting on the road is beyond ridiculous. My daughter bought a Ford Ranger as her first ride. The insurance quote from our independent insurance agent cost more for a 6 month policy than she paid for the vehicle!
    This unlimited lifetime personal Injury protection crap is just another nail in the coffin for the middle class in this state. Oh, and we also get to vote on raising the sales tax to 7% to repair the roads. Not getting my vote. The proposal is poisoned with unnecessary funding for general revenue funds for municipalities among other tack ons.
    The state of Michigan has to learn to live within it’s means, just like it’s citizens must and quit treating us like a.t.m’s

    • 0 avatar
      Drzhivago138

      *its

      *ATMs

    • 0 avatar
      bball40dtw

      Unlimited lifetime injury protection isn’t the biggest cost on a policy. In fact, it’s actually cheap. PIP usually works out to less than $150/year. It’s similar to MedPay states. The Michigan Catastrophic Claims Association fund adds another $186/year per vehicle. That’s nothing in the big picture.

      • 0 avatar
        krhodes1

        $186/yr is more than the cost of full coverage on one of my three cars. Insanity.

        • 0 avatar
          bball40dtw

          The $186 is what the state’s catastrophic claims fund costs per vehicle, per year. It’s less than 10% of many driver’s policy premiums. There are other ways we need to get premium costs in line before that.

        • 0 avatar
          golden2husky

          ….186/yr is more than the cost of full coverage on one of my three cars. Insanity….

          Unless you are talking classic car insurance on a vehicle with Historic plates, I just can’t see how that is possible.

        • 0 avatar
          krhodes1

          That was the Fiat Abarth I just sold – was $185 for the year. Late 40’s, clean record for 15 years, living in Maine. And I get all the discounts for safety, multi-line, multi-car, etc, and it is a special agreed-value policy for long term owners of classic cars, and I have no commute. My actual classic car is $100. Current renewal is $100 for the Spitfire, ~$400 for the Range Rover, ~$300 for the BMW. It really is the insurance deal of the century. Even when I was with State Farm I was only paying $5-600 per car per year for the daily drivers with about the same coverage. Maine is a cheap insurance state. It would be cheaper if I lived further out in the boonies, I’m in the middle of the city relatively speaking.

          Still a little nuts though – it is an agreed value policy. The Rover is insured for $8,000, the BMW for $27,000. The Rover costs $100 more per year to insure? Liability coverage is the same for both of them.

    • 0 avatar
      MBella

      I agree Mike. How is it that when I lived in Michigan, I payed 6% state sales tax, and a state income tax. I moved to Washington, and pay 6.5% state sales tax, and no income tax. Somehow Washington still manages to fix the roads and pay for the schools.

  • avatar
    RideHeight

    It’s absolutely hideous that Michigan, with so much natural beauty and abundant fresh water, should have been afflicted with such an engineered and virulent case of social pathology.

    Reminds me of being a child and seeing all the enchanting canopies of Dutch Elms die away. But at least that wasn’t deliberately accomplished.

    • 0 avatar
      bball40dtw

      The unlimited health benefits you get if you are in an accident in the state of Michigan costs the average Michigan driver about $186 more a year than states where people have $10K MedPay coverage.

    • 0 avatar
      mikehgl

      This state has so much to offer in the way of natural resources. No water shortages here. Affordable housing. No hurricanes or earthquakes.
      Bad roads. Unaffordable insurance. Long winters.
      Guess you have to take the good with the bad.

  • avatar
    Timothy

    For comparison sake:

    36y/o Male with a PERFECT driving record, 2013 FoST in BP.

    I live in Boston, MA (Jamaica Plain neighborhood).

    I pay 1980.00 per year with Allstate. I have very good coverage due to the fact that I drive a lot and my daily commute takes me through the wealthiest suburbs of the state. I want to make my sure I have enough coverage in case the old lady in the Bentley pulls out in front of me.

    … what really effing pisses me off is that due to a “zone adjustment” my insurance went UP 236.00 this year.

    … What REALLY EFFING PISSES ME OFF is that if I move a quarter mile to the west my insurance will drop by 589.00 annually. Brookline, MA vs Boston, MA.

    Insurance companies. grrrrr.

    • 0 avatar
      bball40dtw

      You pay more than me! Holy bejeezus! My rates dropped big time when we went from a Focus ST to a Lincoln MkT. Nevermind that the MkT has 100 more HP and AWD. SAFE!

    • 0 avatar
      SC5door

      Screw Allstate.

      My parents had them for 20+ years, 0 claims, no tickets, multi cars plus homeowners and flood insurance. They continued to raise the rates…Mom switched to Geico with a better policy and they pay 1/4 of what they did with Allstate.

      The Agent had the nerve to send a quote over with some jacked up policy trying to get them back and it was still more expensive. Never again.

    • 0 avatar
      brenschluss

      I can think of roughly 40,000 reasons why you would pay more to be insured in JP than in Brookline.

      • 0 avatar
        Timothy

        40,000?? Wow.

        I can think of 2: JP has a checkered past, as does all of Boston when it comes to car theft. My car lives on the street.

        Aside from that there really isn’t a logical explanation.

    • 0 avatar
      Power6

      Living in boston will kill you in the comp and collision. I had decent rates on my new cars in Waltham and even better in Arlington. You can also save a bit with a 1k deductible and most lenders are ok with it.

      You dont happen to work in Wayland do you? I thought from your commute description that would take you through the fancy metro west suburbs, and i see a blue ST where i drop my daughter at day care evey day.

  • avatar
    Landcrusher

    Healthcare provider thing is just crazy. We are looking at putting my mom into a skilled nursing facility for a few weeks because that is covered with a small co pay. For less money by far, the insurance company could be paying for low skilled, round the clock in home care, but they want to play games instead.

  • avatar

    NY has a simple rule for car insurance. If plates have been issued, they are out on the road being used. Period.

    The DMV and the insurance companies regularly update each other’s insurance databases. Let your plates lapse, and you have 90 days to fix it and pay a daily fine. There is a very specific set of cancellation notices that go out. After 90 days of uninsured the registered owner is suspended for the time equal to the time uninsured. DMV spanks you with a $750 civil penalty too when you re apply.

    Some hard results do occur. I had a stockbroker client who bought an MG classic and parked it in the “upstate” garage for nice summer days. He transferred to London. Insurance lapses, he gets suspended. The fact the car really didn’t leave private property (probably) is not relevant. Plates = Insurance or no license.

    The only out is “you didn’t own the car”, so if the boss doesn’t pay for the work truck it isn’t your problem. NJ is worse, as they assume a driver is always responsible to see if the car is road worthy, so no dismissal.

    My first License Plate Scanner based case was a misdemeanor suspended registration for a famous rock artist. He, unlike the stereotype, is clean cut, intellegent and sober, driving a grey nondescript German car. He passed, the plate reader pinged, and got arrested. He had no idea.

    Turns out the insurance company, in a routine update, made an error. Car registration suspended. Driver driving on suspended reg is a misdemeanor.

    Final hardship story- nice person allows scamming person to register a car in his name. Scammer is usually revoked for cause. Scammer makes promises, eventually defaults on insurance, and nice person loses license and gets big civil penalty as registered owner. I had a legal aid case with a nice person as defendant. She’ll never see the $1500 in penalties and fines scammer left her with, so she’s semi permanently revoked.

    Still, the actual constant checking does reduce what would otherwise be rampant cheating-I did accident cases for a while, and the number of uninsured in NY cases was pretty small. Oh, the insurance companies would caterwaul about who was driving, but the Courts still held them on the policy and that’s a story for another time.

    • 0 avatar
      Big Al from Oz

      @speedlaw,
      What they do in Australia, that is all States and Territories is when you pay for your rego you must produce what is called a ‘Green Slip’.

      This is a green coloured form from your insurer which shows you are insured and with whom.

      So, every registered vehicle on the road must be insured. If it isn’t insured you don’t get your rego.

      • 0 avatar
        Powerlurker

        In Texas, your insurance is registered with a state database so they can just check electronically, and if you try the “cancel your insurance the day after you register” scam, they can tell when they scan your plates.

  • avatar
    mikehgl

    Speedlaw – is there any hope for the Great Lakes State?

  • avatar
    Big Al from Oz

    Insurance costs in the US are very high overall, on everything from health, homes and motor vehicles.

    You might be able to buy cheaper fuel than other nations, but by the looks of it a large chunk of the cost in the difference in fuel price is eaten up by insurance costs.

    Insurance is a non tradable good/service that isn’t recognised when PPP figures are calculated. This masks or lowers the real standard of living figures given.

    The unnecessarily high cost of insurance leaves the consumer with less money to spend in different areas of the economy.

    Litigation in the US needs to be addressed. If a person sue’s and losses he should pay all of the costs.

    Also, limits on how much is given in litigation cases should be addressed.

    I suppose the lawyers will not like me either.

    • 0 avatar
      MBella

      “Litigation in the US needs to be addressed. If a person sue’s and losses he should pay all of the costs.”

      This would save all of us a huge some of money, and it makes way to much sense to be adopted.

  • avatar
    hbarnwheeler

    Where I come from, it is fairly easy for police to tell whether a motorist is insured. There are colour-coded stickers on the license plate which indicate as much. Why isn’t this system (or one more like it) much more common? That there is no concerted effort to keep uninsured drivers off the road is mind-boggling to me.

    • 0 avatar
      Big Al from Oz

      @hbarnwheeler,
      It would be easier if on the registration of a vehicle to produce an insurance form showing that the vehicle will be insured during the duration of registration.

      Then the only vehicles allowed on the road must be insured.

      It involves no additional paperwork or civil servants to manage. It costs nothing and protects the community and other road users.

      • 0 avatar
        bball40dtw

        We have that in Michigan, Al. When I renewed my registration this year, I had to provide proof of insurance. People cancel their insurance once they have their registration.

        • 0 avatar
          Big Al from Oz

          Can’t do that here bball40dtw, it’s locked in with your rego. The only way is to remove the registration from the vehicle.

        • 0 avatar
          Big Al from Oz

          @bball40dtw,
          That just made me realise the Green Slip. It’s the connection between the insurance and the rego.

        • 0 avatar
          28-Cars-Later

          Coming from IT, I don’t think it would be very difficult to link a state database to major insurance carriers in a state. The state already retains records for title (assigned owner), lic plate (id), registration (a tax), and emissions (a tax), its not a great leap to link these to insurance coverage. Just sayin’

          • 0 avatar
            bball40dtw

            I think they should. I don’t know why they haven’t. It’s not even that hard.

          • 0 avatar
            28-Cars-Later

            Other than general gov’t incompetence, probably because there is a cost. Both industry and state DOT would have to spend time/money to develop a new system or adapt an existing one. Because insurance varies per state, this would have to be done per state too. But its certainly worth doing, then again though the next question will your state actually enforce the laws as they stand? I.e. in this state you can be towed for driving out of registration or driving on suspended licence, but not arrested. However in practice, you are only getting towed if you/LEO is being a dick OR if you are found to have broken other laws (i.e. found with weed). So you have this great system, but are you the LEO or local police force actually going to go look for people out of compliance and remove them from the streets? If not, then whats the point.

          • 0 avatar
            bball40dtw

            The insurance companies have the tech in place to do it themselves. They already share a bunch of info with each other.

          • 0 avatar
            28-Cars-Later

            But does gov’t have the ability to link this information if share (and is the method of sharing compatible to their technology, gov’t is always behind on tech vs industry)?

          • 0 avatar
            highdesertcat

            There is excellent data-mining software out there that will address various legacy databases, but I do not believe that different departments at state-level will want to work in unison.

            In NM, if you cancel insurance, the insurance co is supposed to notify the state DMV/MVD, but no action is ever taken if they do.

            But if you fail to renew your registration or drivers license, lo and behold, all sorts of notices appear in your mailbox, even if you no longer own the vehicle or reside out of state!

          • 0 avatar
            MBella

            Agreed. My sister’s car is registered in my name. When I changed insurance provider’s on it, Progressive let the bank know and I got a call from them in about 2 days to send them proof of the new policy. Why not require the insurance companies to do the same with the Secretary of State. They could do it through an automated web based database like 28-Cars-Later suggests.

          • 0 avatar
            Powerlurker

            Texas does this. When I renew my registration online, they already know about my insurance because it’s in the database. If I were to cancel it, the police would be able to tell by scanning my plates.

        • 0 avatar
          Kevin Jaeger

          Michigan insurance companies are also happy to offer one week insurance policies to get you through those times when you actually have to show proof of insurance – such as at registration time or to get your car back after being impounded.

          No need to cancel if your policy is only for a week anyway.

          • 0 avatar
            MBella

            These shady policies should be outlawed. There is usually an insurance agent that sells these very close to a Secretary of State office just for this reason.

  • avatar
    Conslaw

    If we were smart, we would implement a “pay at the pump” car insurance system now while gas prices are low. The modest increase in gas price would still be less than we were paying a year ago, and you would eliminate uninsured drivers. We won’t do it though, mostly because the vast majority of drivers think they are above average, and the bad drivers should pay more. Of course, on average, we are actually average drivers and our risk to other drivers is roughly proportional to the miles we driver, which is proportional to gas prices. The other reason we won’t is that insurance is regulated on a state basis now, and when one state implemented a pay-at-the-pump system, there would be a “border problem” , with people crossing state lines to fill up cheaper etc.

  • avatar
    Bimmer

    What are they all complaining about!?

    Insurance costs a lot more if you live in a Soviet Ontario! Especially if you live in Brampton. I live south of Brampton and just received a letter for my annual renewal at… $3,000 for the minimum legal required coverage (1-way with $1K deductible and $1 MLN liability) for a… 14 year old domestic (that at the time had 5 star crush rating and one of the lowest theft rates) that I’m about to replace.

  • avatar
    mikey

    Up until 2 years ago , I would pull the “road insurance” and keep fire and theft on the Mustang from Oct 1 to April 1. Then when the new law, came in, no liability insurance, means no plate sticker.

    I just keep it fully insured, all year now.

  • avatar
    VenomV12

    I am skeptical about Michigan having the highest car insurance rates. Buddy of mine has a house in Oklahoma and a house in Michigan, both the same kind of prices, neighborhood, distance from major metros etc, one car registered at the house in Oklahoma and one at the house in Michigan both cars cost roughly the same and his insurance for the one in Oklahoma is much higher than the one in Michigan.

    • 0 avatar
      MBella

      For some reason, the differnce really seams to be on multiple cars. When I moved to Washington, my Subaru at the time only cost about $25 less a month. When I added the Miata, that only added about $60 a month to my policy. In Michigan, when I had my sister’s Cruze on my policy, The Cruze cost an additional $125 per month. Your friend would do better changing his legal residence to the cheaper state and insure and register both cars there.

  • avatar
    thegamper

    Not much will change under the system as being proposed. The problem is the onus of costs associated with catastrophic claims needs to be shifted to the individual, not the insurance system. I suspect in most other states once the policy limit is exhausted, a seriously injured motorist must use health insurance, medicare or Medicaid. This is a band aid for a bullet wound unfortunately.

    Why not just study states with reasonable systems and implement best policies. In any event, I pay $3000 per year for broad form collision/full coverage on two vehicles with highest policy limits, over a million I believe. I live in Oakland county Michigan, which is in the Detroit Metro area and actually work in Detroit. I feel like it is basically another car payment, but when I look a bit closer, I suppose it is not insane in terms of cost. But 10 years ago I was paying half that.

    I can say that somewhere upwards of 75% of case filings in wayne county are PIP auto injury claims. I think some legislation/tort reform is probably in order to reign in this runaway litigation.

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