Auto insurance companies make good money in our State, selling and managing no-fault insurance, and that is obviously good for everyone. However, despite years of solid profits here in our State, auto insurance companies, evidently not satisfied with just doing phenomenally, want even more, even though the economy has been tough for just about everyone else.
In 2011, the insurance industry lobby proposed a bill in the Michigan Legislature, called “HB 4936”; it went nowhere, because people saw it for the fraudulent rip-off that it was. HB 3936, and its more current versions, create an illusion of choice as to no-fault coverage; currently, no-fault coverage is the same for everyone. The “choice” is merely an illusion, because insurance companies know (based on the experience of other states which have tried this), that people will simply opt for the cheapest coverage they can find, leaving auto accident victims to turn to government-supported programs like Medicaid, and private health insurance programs to pick up what is now paid for by profitable Michigan no-fault insurance companies.
What will happen to the cost of Medicaid, if auto accident victims have to turn to Medicaid, to pay for accident-related injuries? Those costs, naturally, will go up, and by definition, the taxes we pay to support Medicaid will have to go up, if these dangerous proposals pass. Similarly, what will happen to the cost of private health insurance, if auto accident victims have to turn to private health insurance, to pay for accident-related injuries? Those costs, in the form of health insurance premiums, like taxes for Medicaid, will have to go up, as well.
Ultimately, this is not about making insurance cheaper in Michigan’s big cities, or anywhere else. It is ultimately about making what is now a standard product, into a premium product, for which insurance companies can charge more. It is fraud and extortion, and Michigan motorists need to contact their State Reps/Senators, and the Governor, to put this fraud and extortion to an end.
Here are links to State Reps/Senators, and the Governor. Send them an email, and let them know you oppose this wrong-headed effort to take more and more money out of your wallet!
Find Your MI State Senator: www.senate.michigan.gov/FindYourSenator/byaddress.htm
Find Your MI State House Representative: www.house.mi.gov/mhrpublic/frmFindARep.aspx
Contact the Governor: somgovweb.state.mi.us/GovRelations/ShareOpinion.aspx