The real cost of a DUI on your record

Aside from the physical and emotional cost of a DUI or DWI, driving under the influence could wind up costing you up to $20,000 in legal fees and fines, and the additional cost to your insurance could skyrocket, depending on your driving history.

Auto insurance premiums are calculated based on what your insurer calculates your individual risk to be, and a DUI is among the costliest factors that could determine your risk.

According to CoverHound, in the first year after getting a DUI, your car insurance premium could go up as high as 94.13%. After the second and third year, granted no additional moving violations, premiums could lower slightly, but it will still cost you. On the third year after a DUI, the average premium rings in at a 63.74% increase.

State-by-state differences
To get a better estimate of how a DUI would affect auto premium increases, analyze local data as rate increases vary state-by-state. For instance, in Maine, the average rate increase after a DUI is 37%, way below the national average of 80%, and significantly lower than North Carolina’s average increase of 371%.

Among the states with the highest premium rate increases are Michigan (249%), California (186%), Hawaii (208%), Arizona (145%), New Jersey (132%), Delaware (81%), Georgia (78%) and Rhode Island (68%).

The states with the lowest rate increases are Maryland (28%), Indiana and Maine (37%), Vermont (41%), Alaska and Wisconsin (46%), and New York (47%).

The average national dollar increase to auto premiums after a DUI is $1,163, and the average rate cost rings in at $2,610 each year.

Driving under the influence is undoubtedly one of the most dangerous decisions a person could make, threatening the wellbeing of not only the driver, but every other driver and passenger on the road. It is a violation so serious, some insurance companies might not even raise your rates — they’ll just cancel your policy altogether.

This becomes the worst-case scenario for your wallet. If you are forced to shop for a new policy, you will not only have a DUI on your record driving up your rates, but also a policy cancellation that will cost you even more as your risk multiplies.

A DUI will stay on your criminal record for the rest of your life, but eventually, it will be cleared from your DMV record, which is the good news for your wallet. Insurance companies only see what’s on your DMV record, so after a DUI has cleared, your rates will eventually go down. How long this takes, however, varies by state.

In most states, a DUI or DWI will stay on your DMV record for at least 5-10 years, but some states are significantly stronger on this. In New Mexico, for example, a DUI stays on your record for 55 years — so potentially the rest of your life. The best way to calculate the cost of your DUI is to talk to your agent or broker, and when your rate undoubtedly increases, shop around as you may be able to find a cheaper option.

The Hard Truths About Michigan's New Revised No-Fault Law.

THE HARD CORE TRUTH 

AND 

FACTS ABOUT MICHIGAN'S NEW 

AUTO INSURANCE LAW

Press conference fighting against the new auto reform bill that will
not save Michigan Consumers much but take away much needed coverage

The Legislators in Lansing are trying to put their own spin on an absolutely horrific bill that they passed.  This bill may go down in history as one of the worst bills ever passed by the Michigan Legislature.  Your premium rates are likely to go up not down!  You will likely now need to purchase additional insurance out of your own pocket to protect your financial interests such as your home, auto and other savings.

Right now, drivers are required to purchase unlimited personal injury protection (PIP) coverage, which guarantees insurance companies will cover all of the medical costs associated with car accident injuries. That also means auto insurance companies pay regardless of who’s responsible for the accident.

Under the new plan, drivers can choose between five tiers of PIP coverage beginning July 1 2020:

• Unlimited PIP coverage (the same coverage as now)
• Insurance companies will cover up to $500,000
• Insurance companies will cover up to $250,000
• Insurance companies will cover up to $50,000 — the lowest-price option available to people on Medicaid, who cannot opt out entirely.

Opt-out of PIP coverage entirely, if you have separate health insurance that covers collision injuries.

If a driver doesn’t have unlimited PIP coverage under the new system and gets in a car accident that’s not their fault, and medical costs exceed the amount of coverage they have purchased, they can sue the at-fault driver for charges beyond their coverage.

Under the new plan, insurance companies are required to lower PIP (personal injury protection) coverage rates depending on the level of coverage purchased:

• Those who keep unlimited PIP coverage would receive a 10 percent roll back of PIP coverage costs on average.
• Those who choose the $500,000 get a 20 percent rollback on average.
• Those who choose the $250,000 plan, get a 35 percent rollback on average.
• Those who choose the $50,000 plan, get a 45 percent rollback on average.

Those rate rollbacks must say in place until July 1, 2028. After 8 years, insurance companies no longer will have to hit exact rate rollback targets,. but they’ll still be bound by new rules that require them to get rates approved by the state Department of Insurance and Financial Services before offering them to consumers.

These savings only apply to the PIP and many have been mislead into thinking that they could save 50% or more on their total insurance premiums.  This is not the case.  The savings is only on the PIP!

Currently under the PIP the insurance companies are currently only required to cover medical expenses up to $580,000 after that amount is exhausted, then you go to the MCCA (Michigan Catastrophic Claims Association) fund. 

Other portions of the Auto Insurance policy such as liability and physical damage coverages (collision and other than collision/comprehensive) will not be impacted by this law.   In fact it is quite possible these rates will go up!

The MCCA is the fund that provided unlimited medical benefits but in addition to those medical benefits you also received reimbursement for expenses that help you with care including rehabilitation and at home including household chores that you were unable to do.  The most important factor in the MCCA was the long term care it provided!  Health Insurance coverages are limited (and varies by insurer) and if your care requires long term care, those expenses come out of your pocket.

On my travels meeting with people and legislators to get a real plan, I met many who would not be here today if they didn't have our current auto coverage.  One young man spent 1 year and 4 months in a coma from an auto accident, that he did not cause!  With the new plan he surely would have been deceased today! Mostly likely, as will most drivers (historically most people do not properly pick the higher limits when offered), he would have chosen a lower medical plan to save money on his auto premium not realizing what he was giving up.

The young man who spent 1 year and 4 months in a coma and
was saved by Michigan's Current No-Fault Law

The MCCA premium is set to jump to $220 this month per vehicle, which equates to about $18.33 a month for unlimited coverage!  Yes the MCCA needs to be audited annually with the information being made public and the MCCA board should force an annual public audit annually.  The board should consist of at least 2 non-Insurance but public members that should help with the oversight. 

The primary reasons why we have such high premium rates with PIP and the MCCA are:

• Currently no true fee scheduling for medical services rendered (new law still allows insurance companies to be overcharged by as much as 240% above market price for medical services)
• Tort Law passed in 1995 that allowed a Tort System to parallel the No-Fault system
• No true or open auditing of the MCCA financial records

To help with oversight on these expenses and fraud, a strong state fraud unit would help deter those that want to use the insurance companies and people's premiums as their ATM.

With no true fee scheduling one could currently pay $500 for an MRI but if paid by the Auto Insurance carrier it could be $4,000 or more!  Health insurers, Medicare and Medicaid have limits to what they will pay, why don't auto insurance companies have the same limits?  Under the new law set to take effect on July 1, 2020, auto insurers could still be charged more than 240% above market price for medical services rendered.

In 1995, the Michigan Legislature weakened the no-fault law by redefining how hurt a person injured in a car accident must be to be able to recover money damages for his or her pain and suffering. This has allowed for numerous claims to hit the insurance companies.  Many of the trial attorneys that file these claims have toned their cases to make the insurance companies settle out of court.  It is much more expensive to try a case in court, especially if you lose, than to try to settle out of court.  Speaking with my insurance companies, they have advised that 99% of the cases don't even make it to court.  This tort claims, considered nuisance claims have been the #1 reason for the PIP premium increases. Fixing this loophole will help reduce premiums.

The Michigan Catastrophic Claims Association fund is another reason why our rates are going up.  In reality though it is a small portion.  With the rates increasing to $220 annually per vehicle, it amounts to only $18.33 a month as I stated above.  If you put in place a stronger fraud unit, proper auditing / public reporting and using other means of income to fund the association - including its own interest earned, and using fee scheduling that matches the market value of healthcare,  this will help reduce the premium fee and allow us to keep out unlimited health care.  

Instead of passing real reform that was suggested in this article, our legislators decided to put a bill forward that really looks like it caters to the lobbyists.  

Since medical coverage limits are now going to be limited for many, once they are injured and can not pay for their medical bills, the burden will fall on the driver that caused the accident. This is why, in my opinion, the Trial Lawyers have remained quite on these reforms.  Injured drivers will be suing those that caused the accident to collect medical payments after their limits are exhausted! Current auto limits of liability will not cover most people.  The new state limits of liability that will be required are going to be $50,000 per person and $100,000 for all injured persons per accident.  Most people in Michigan today carry limits of $100,000 per person and $300,000 for all injured persons per accident.  This still will not be enough coverage should you injure someone that needs long term care.  

As an independent agent, who doesn't work for the insurance companies but only sells their products, I  will be recommending to all my clients that they will need to increase their liability limits on their auto policies to the maximum (most cases $1,000,000) and to purchase extra liability in at least another $1,000,000 to maybe $2,000,000 to protect themselves from this new exposure created by our legislators in Lansing.  Whom in my opinion seem to be more worried about their next job with lobbying firms once their term limits are up.  

In addition to destroying our medical coversgrs, insurance companies can now designate new territories because they can no longer use zip codes.  They could possibly micro target neighborhoods or further down to city blocks using the same formula as the US Cencus does.

All of these factors make this new revision in our auto insurance one of the most, if not the most, horrific bills to come from our legislators in Lansing.

Does my personal auto insurance policy cover Uber?

The last time I hailed an Uber, the driver asked me what I do for a living (I work for an online insurance agency). Over the course of the conversation, I learned two things:

Insurance’s reputation for being boring is alive and well.

The driver had no idea his personal car insurance didn’t cover his rideshare driving.

And he’s not alone. A survey of nearly 1,000 rideshare drivers found that more than 90 percent don’t have a rideshare-friendly policy. That means a lot of drivers are probably under the assumption that their personal auto policy is enough.

It’s not.

Here’s the scoop: when you charge for rides, you’re technically a freelancer in both the eyes of the law (for now) and the eyes of your insurance company. Insurance companies offer different policies for business-related driving, which means your personal auto policy likely doesn’t cover your rideshare activities—or anything you make money on.

In other words, if you get in an accident while you’re accepting ride requests, those damages may come out of your pocket.

Let’s break it down and look at three things you need to know about rideshare driving and insurance so you don’t end up with unexpected expenses.

1. Your insurance company can drop you if it finds out you drive for pay.

Again, by the insurance company’s standards, rideshare driving makes you a commercial driver. That means you are also a bigger risk—after all, if you drive to make money, you’re probably on the road more than you would be otherwise. And your personal auto insurance wasn’t designed to cover that increased risk exposure.

At the end of the day, an insurance policy is just a contract. Your insurance company issues the policy based on the information you provide. Throw a curveball by becoming a rideshare driver after the fact, and you’ve broken that contract. When you applied, your company never agreed to cover you for ridesharing. That means it’s free to walk away.

2. You might be charged higher premiums for your personal car insurance later on.

After your auto insurance company cancels your policy, finding affordable car insurance becomes much harder. There are two major reasons why.

First, to avoid getting dropped again, you’ll need to be upfront about your rideshare activities. As we mentioned earlier, business driving is considered “riskier” and in the insurance world, that usually means more expensive.

Second, being dropped is a red flag for other insurance companies because it suggests you are a high-risk driver. Some companies may back away completely. Others may take you on, but at a higher cost.

3. The rideshare company’s insurance won’t fill all the gaps.

Wait, you might say. Uber or Lyft’s insurance covers my driving!

If you’re at fault for an accident during what’s called “period 1” (the time when you’re online but don’t have a ride request), your insurance may not be enough. That is because the coverage is lacking for a couple of reasons.

Doesn’t cover vehicle damage. Those repair costs come out of your pocket.

Might not cover all the lawsuit costs. The rideshare company’s liability coverage is limited during this time frame, so you might be stuck paying for whatever amount exceeds the policy limits.

That said, unlike personal auto insurance, the rideshare company’s insurance can cover vehicle repair and liability costs for accidents that happen during “period 2” and “period 3”.

Period 2: when you’re online and have a ride request.

Period 3: when you’re online and have a rider in the car.

However, the deductibles are still pretty steep—and remember, you still don’t have much protection during that crucial period 1. So let’s look at some other options.

Car insurance options for Uber and Lyft drivers
There are two ways you can get coverage for the driving you do while online and waiting for a rider:
Get a commercial auto insurance policy. It can cover vehicle damage and liability costs for accidents that happen during any of your rideshare duties.

Get a rideshare-friendly personal auto insurance policy. You’ll want to look for one that offers period 1 coverage to supplement your rideshare company’s insurance. Many insurance companies (including GEICO, Erie, Farmers, State Farm, and others) now have limited rideshare options. Your best bet is probably to Google “rideshare insurance” plus your state.

You might be tempted to roll the dice and forgo either option, but consider this: Commercial vehicle claims cost $45,000 on average. If you don’t have that kind of pocket change lying around, it’s smart to make sure your rideshare driving is covered.

What’s the easiest way to figure out what works for your needs and budget? Talk to an insurance agent who has experience insuring rideshare drivers. They can help you find the policy that meets your state’s coverage requirements and that protects you every time you hit the road.

The Michigan Catastrophic Claims Association Fee Jumps to $220 Per Car July 1st 2019

The association announced the fee on auto insurers will rise from $192 to $220 on July 1, a $28 increase that will ultimately be passed along to consumers in the form of higher rates.

Gov. Gretchen Whitmer on Wednesday ordered an accelerated state audit of the Michigan Catastrophic Claims Association after the private non-profit's board voted for a 15 percent increase in the annual auto insurance assessment.

State law requires auto insurance companies to pay the assessment to cover costs of lifetime medical benefits guaranteed under Michigan’s no-fault auto insurance law. 

The MCCA operates as a reinsurance program, reimbursing auto insurance companies for expensive medical claims for motorists who are catastrophically injured in auto accidents. The claim threshold is also set to rise from $550,000 to $580,000 this summer.

The pending increase in the fee — which has risen 76 percent since reaching $124.89 in 2009 — comes as Michigan lawmakers develop plans to reform the state’s no-fault auto insurance and rein in rates that already rank among the most expensive in the nation.

Drivers across the state are "feeling the pinch of paying the highest auto insurance rates in the nation and it’s time to do something about it," Whitmer said in a statement. “Michiganders deserve to know why they are being forced to shell out hundreds of dollars in additional fees for car insurance, which is why I’m ordering an audit to provide drivers with the transparency they deserve."


MCCA officials testified before a Senate committee earlier this month, disputing anti-transparency accusations while arguing that “waste and fraud” in the medical system is driving up insurance costs.

The association, created by the Michigan Legislature in 1978 but controlled by insurance companies, is sitting on $20.6 billion in assets but claims $23.5 billion in long-term liabilities. It is not subject to public records requests that could shed further light on its fee calculation process but publishes internal financial and independent auditor reports each year.

The annual fee is designed to cover current-year catastrophic claims but also gradually pay down a $2.9 billion deficit over 15 years, MCCA Executive Director Kevin Clinton told lawmakers.

In announcing the pending $28 fee increase on Wednesday, the MCCA said its costs are rising, in part, because more individuals are receiving benefits and medical care costs continue to rise. 

The association said it paid out $1.2 billion in 2018 for claims resulting from catastrophic injuries. The majority of claims involve brain and spinal cord injuries, multiple fractures, and back and neck injuries. Most of the payments were for attendant care, prescriptions and hospitalizations. 


The Michigan Department of Insurance and Financial Services, which Whitmer ordered to conduct a separate and accelerated audit, has the authority to examine MCCA documents and review its operations, a process that last occurred in 2015, according to the administration.  

“Today we told the MCCA that we were concerned and strongly urged them to provide more information so the public can understand the basis for this fee increase,” Insurance Director Anita Fox said in a statement welcoming the governor's request for a financial audit. 


Other long-discussed reform ideas include a fee schedule for medical providers that would cap the amount they are allowed to charge insurers for patients injured in auto accidents. Ronald Dwyer of Roninsureme.com, has been one such voice for better fee scheduling.  "I have been stating for years that we need to put medical fee scheduling in place similar to that of Medicare/Medicaid.", Said Ronald Dwyer.  "Right now their is no true cap only the term 'Reasonable Costs' ."

Dwyer also stated the following "Michigan is not the only state in the union with no-fault, we are though the only state with unlimited benefits.  We don't not want to get rid of our unlimited benefits or our no-fault coverage - which is to prevent you from having to go to court  to sue the other driver to get medical reimbursements.  Two main factors have driven the cost of insurance; 1) No True Fee Scheduling for medical coverages/benefits 2) Our legislature in the mid 1990's opened up Pandora's box by easing restrictions on lawsuits pertaining to auto accidents through legislation. This has caused a rise on insurance claims that are most of the time frivolous which in turn have raised insurance premiums to record levels. If we fix these two issues we can keep our unlimited benefits and keep our insurance premiums more affordable."

Michigan’s Republican-led Senate and House are developing proposals that are expected to provide motorists with the “choice” to purchase auto insurance policies with reduced medical coverage. Dwyer believes this is a very bad idea, "What will happen is your will have to pools of coverage and everyone will want to make the wrong choice by taking the reduced coverage. This will leave the other pool with few participants which will then make the unlimited coverage to expensive and it will collapse. It will be a back door way of reducing coverage for all with no guarantee about lowing premiums for a long period of time. " 

Supporters of Michigan’s no-fault auto insurance system contend that eliminating the state’s guarantee of lifetime medical benefits would end an important safety net for some injured motorists and ultimately force more residents into bankruptcy and on to government health coverage.

Legislators have tried for years to reform the state's auto insurance laws, but efforts have repeatedly stalled amid intense lobbying from hospitals, the insurance industry and trial lawyers. 

Spring means hail, and costly hail damage

Flooding, tornadoes, hurricanes and wildfires often steal the spotlight but beware of underestimating the fury of a hailstorm.

Reports of Golf Ball Sized Hail in Houghton Lake MI - 

video from Kevin Blazo Houghton Lake Resident 

August 2nd 2015

Hail causes about $1 billion in damage to crops and property each year, according to the National Oceanic Atmospheric Administration (NOAA). And although hailstorms are rarely associated with fatalities, they are responsible for serious injuries and severe property and automobile damage.

Here is some advice on how to prepare for potential hail storms:

Before a Hailstorm

• Check your policy to see what’s covered and the deductible you’ve chosen.
• Your insurance policy typically covers the cost to repair roofs and cars and other common hail damage.
• You may have a higher deductible for wind and hail damage than you do for other types of claims.
• Talk to your local independent agent to find out more.
• Repair or replace worn, curled or missing shingles.
• If your roof is aging, consider replacing it before hail season begins.

During a hailstorm

• Stay indoors.
• Stay away from skylights and glass doors to avoid broken glass.
• If it is safe, close drapes, blinds or shades to prevent debris from blowing inside.
• If possible, park vehicles in a garage or other covered area.

“Hail comes without much warning,” said 27 year insurance veteran Ronald Dwyer of Roninsureme.com, “and can cause significant damage to property.”

Things you shouldn't leave in or do with your car when temps fall below freezing

As temperatures drop in winter and especially mid winter, here are a few simple reminders that not does your body need to be protected from the cold but so do the following things...

Cellphones 
Apple advises against storing the iPhone or iPad at temperatures below negative-4 degrees, and they shouldn't be operated at temperatures lower than 32 degrees. There are similar recommendations for Samsung phones and other electronics. Lithium-ion batteries popular in cellphones are the most vulnerable component to cold. They can stop working in extreme cold but should be OK once you get back indoors. However, repeated exposure to subzero temperatures can cause problems.

Soda or beer 
Water expands when it freezes. And for canned liquids under pressure, that can mean explosion. The freeze temperature for Coca-Cola is 30 degrees, and the temperature for beer that's 5 percent alcohol by volume is 27 degrees (higher-alcohol beers freeze at lower temperatures) 

Musical instruments 
Things contract when they freeze, so this can cause some instruments to go out of tune. More seriously, "damage can be done when an instrument shrinks as a result of the cold air. If your instrument is made of real wood, the cold air can cause cracking, which is very expensive to repair. Sometimes they are broken beyond repair," according to The Real School of Music. If an instrument is left in a freezing car for a long period, try to make it warm up gradually.

Eggs 
Eggs shouldn't be allowed to freeze in their shells; if that happens, throw away any cracked eggs. Keep the un-cracked ones frozen, and move them to the refrigerator before use. "These can be hard cooked successfully, but other uses may be limited. That's because freezing causes the yolk to become thick and syrupy so it will not flow like an unfrozen yolk or blend very well with the egg white or other ingredients," according to the U.S. Department of Agriculture Food Safety and Inspection Service.

Canned foods 
Letting a can of beans freeze allows for the water to freeze and expand in a similar way to beer and soda. The USDA advises that this can result in a broken seal, causing spoilage. If canned food freezes, allow it to thaw in a refrigerator. "If the product doesn't look and/or smell normal, throw it out. DO NOT TASTE IT! If the seams have rusted or burst, throw the cans out immediately, wrapping the burst can in plastic and disposing the food where no one, including animals can get it," according to the USDA.

Medication 
If you're visiting a pharmacy during the deep freeze, consider that some medications can be affected by low temperatures. "Drugs like insulin can lose their effectiveness if they freeze. The same goes for any so-called suspended medication that has to be shaken before use," according to a report in The New York Times.

A low gas tank
 Keeping a fuel tank more than half-full helps to prevent fuel lines from freezing. It's also a good idea to check fluids, such as antifreeze. The cold can affect tire pressure. "A temperature change of just 10 degrees can cause a 10 percent reduction, or constriction, of air in tires. So tire pressure can be affected from day to night temperature," according to a report in the Chicago Tribune. 

Loved ones 
This should be obvious. But it's worth noting that children and elderly people can be more susceptible to hypothermia at cold temperatures, with symptoms such as shivering, confusion and exhaustion, according to the Centers for Disease Control and Prevention. So even limited amounts of time in an unheated vehicle could be dangerous. The same goes for pets.

What to Look for Before You Return Home After a Fire

Should you ever be in the unfortunate position to have to escape or endure a fire, these tips will help keep you safe.

Don’t move back in just because everything looks fine.

Sometimes homes that appear completely safe after a fire can conceal damage that is invisible to homeowners. It is important that you have your home thoroughly inspected by licensed, experienced professionals.”

That often means more than one professional. It is unlikely that a single inspector will be able to conduct all aspects of your home investigation. More likely, you will require the services of multiple specialists, including a structural engineer, an industrial hygienist, and a plumber.

It may seem like a hassle to parade numerous people through your home when all you want to do is get back to normal, but, when it comes to specialists whose job it is to ensure the safety of your home and its inhabitants, the more, the merrier. While smoke damage is visible on walls and ceilings, it can also permeate these surfaces and cause damage to a home's structure/framing, wall studs, insulation and air ducts in your ventilation system. When soot and smoke particles become trapped in the HVAC system, the smoke odor can reoccur periodically and even cause respiratory problems.

Be wary of ashes

Any ash will contain small amounts of cancer-causing chemicals. In addition, fire ash may be irritating to the skin, especially to those with sensitive skin. If the ash is breathed, it can be irritating to the nose and throat and may cause coughing. Exposure to ash in air might trigger asthmatic attacks in people who already have asthma.

Take great care with any ash that has settled around the property, including wearing gloves, long sleeved shirts, and long pants and avoid skin contact, staying away from leaf blowers, and leaving remediation to the professionals.

Hire a public adjustor

Yes, you need to have your home assessed for insurance purposes, and that will entail having an insurance adjustor come out. However, the adjustor your company wants to send out works for them. A public adjustor works for you, and is a better way to ensure that you get as much money as you can to repair or replace the damaged items in your home.  This is also where an independent insurance agent can offer some assistance as they work for you not the insurance company unlike captive agents that are employees of their company, such as State Farm, All State, AAA, etc.

The public adjuster, works only for the policy holder. The public insurance adjuster is also an independent insurance adjuster but they are hired by the policy holders who are filing the claim. Public insurance adjusters are often hired by insurance policy holders to make sure they are getting their full claim benefit from the insurance policy they purchased.