Auto Insurance Reform Is Coming To Michigan

Michigan Gov. Rick Snyder and Republican lawmakers have unveiled a proposal to end unlimited lifetime coverage for medical expenses tied to auto accidents.

Drivers now pay $175 per car per year to cover catastrophic injuries, and the fee is rising to $186 this summer.

The insurance lobby and other critics say Michigan’s unique requirement for unlimited medical coverage is too expensive. Hospitals and others say it should stay intact.

The governor’s office announced that Snyder joined State Sen. Joe Hune, State Rep. Pete Lund and business leaders on April 18 to announce a plan for no-fault auto insurance reform aimed at lowering the cost of insurance for Michigan drivers and sustaining the system into the future.
The plan calls for an end to the requirement that consumers purchase unlimited lifetime medical coverage, according to the governor’s announcement.

Michigan’s mandatory coverage for catastrophic accident victims would continue to be the best in the nation, the announcement said. It would provide $1 million in coverage and is estimated to lower insurance premiums by $250/year for the average Michigan family.

Past attempts to limit medical coverage have stalled in the Legislature. Snyder made the issue a priority in his January State of the State address, giving hope to proponents of changing the system.
The average auto insurance medical claim in Michigan is more than $45,000, twice as high as the next closest no-fault state, the governor’s office said. The result is costlier premiums for consumers.
The plan also calls for the establishment of a fraud authority funded by insurance providers to combat insurance fraud.

Auto insurance premiums in three Michigan cities are among the top ten highest in the nation and the rate of uninsured in urban areas is estimated as high as 50 percent, according to the announcement. Companion legislation proposed by Sen. Virgil Smith would establish a pilot program for eligible low-income Michigan drivers to purchase a low cost policy. The program would allow medical coverage to be purchased at $50,000 to lower the cost even further.

The Michigan Catastrophic Claims Association (MCCA) would be phased out and replaced by a non-profit entity that would be subject to full transparency. The existing MCCA will continue to ensure that all current accident victims receive unlimited, lifetime benefits from their insurance company.
Legislation is expected to be introduced in the next week, the governor’s office said.
Sources: Michigan Governor’s Office, Associated Press

Tips That Will Help Reduce Your Home Insurance Premiums

1. Shop Around

This is where I can help. As an independent agent I represent multiple companies and can do the shopping for you. Visit my website to call me or fill out my quote questionnaire for a quick quote.

2. Raise Your Deductible
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Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums. Nowadays, most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25 percent. Remember, if you live in a disaster-prone area, your insurance policy may have a separate deductible for certain kinds of damage. If you live near the coast in the East, you may have a separate windstorm deductible; if you live in a state vulnerable to hail storms, you may have a separate deductible for hail; and if you live in an earthquake-prone area, your earthquake policy has a deductible.

3. Don�t confuse what you paid for your house with rebuilding costs

The land under your house isn't at risk from theft, windstorm, fire and the other perils covered in your homeowners policy. So don't include its value in deciding how much homeowners insurance to buy. If you do, you will pay a higher premium than you should.

4. Buy your home and auto policies from the same insurer

Some companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them. But make certain this combined price is lower than buying the different coverages from different companies.

5. Make your home more disaster resistant

Find out from your insurance agent or company representative what steps you can take to make your home more resistant to windstorms and other natural disasters. You may be able to save on your premiums by adding storm shutters, reinforcing your roof or buying stronger roofing materials. Older homes can be retrofitted to make them better able to withstand earthquakes. In addition, consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage.

6. Improve your home security

You can usually get discounts of at least 5 percent for a smoke detector, burglar alarm or dead-bolt locks. Some companies offer to cut your premium by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations. These systems aren't cheap and not every system qualifies for a discount. Before you buy such a system, find out what kind your insurer recommends, how much the device would cost and how much you'd save on premiums.

7. Seek out other discounts

Companies offer several types of discounts, but they don't all offer the same discount or the same amount of discount in all states. For example, since retired people stay at home more than working people they are less likely to be burglarized and may spot fires sooner, too. Retired people also have more time for maintaining their homes. If you're at least 55 years old and retired, you may qualify for a discount of up to 10 percent at some companies. Some employers and professional associations administer group insurance programs that may offer a better deal than you can get elsewhere.

8. Maintain a good credit record

Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price homeowners insurance policies. In most states, your insurer must advise you of any adverse action, such as a higher rate, at which time you should verify the accuracy of the information on which the insurer relied. To protect your credit standing, pay your bills on time, don't obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.


9. Review the limits in your policy and the value of your possessions at least once a year

You want your policy to cover any major purchases or additions to your home. But you don't want to spend money for coverage you don't need. If your five-year-old fur coat is no longer worth the $5,000 you paid for it, you'll want to reduce or cancel your floater (extra insurance for items whose full value is not covered by standard homeowners policies such as expensive jewelry, high-end computers and valuable art work) and pocket the difference.

10. Look for private insurance if you are in a government plan

If you live in a high-risk area -- say, one that is especially vulnerable to coastal storms, fires, or crime -- and have been buying your homeowners insurance through a government plan, you should check with an insurance agent or company representative or contact your state department of insurance for the names of companies that might be interested in your business. You may find that there are steps you can take that would allow you to buy insurance at a lower price in the private market.

11. When you're buying a home, consider the cost of homeowners insurance

You may pay less for insurance if you buy a house close to a fire hydrant or in a community that has a professional rather than a volunteer fire department. It may also be cheaper if your home’s electrical, heating and plumbing systems are less than 10 years old. If you live in the East, consider a brick home because it's more wind resistant. If you live in an earthquake-prone area, look for a wooden frame house because it is more likely to withstand this type of disaster. Choosing wisely could cut your premiums by 5 to 15 percent.

Check the CLUE (Comprehensive Loss Underwriting Exchange) report of the home you are thinking of buying. These reports contain the insurance claim history of the property and can help you judge some of the problems the house may have.

 

Visit www.Roninsureme.com for a quote and more information.